Posted on Thu, Jul. 13, 2006
Intel to lay off 1,000 managers
ONE STEP IN WORLDWIDE COST-CUTTING RESTRUCTURING
By Dean Takahashi
Mercury News
Intel said today it will lay off 1,000 managers, or about 1 percent of its workforce, across the entire company as part of an effort to reduce bureaucracy and costs.
The cuts are part of the Santa Clara chip giant's plan to become more nimble and reduce costs by $1 billion a year.
Paul Otellini, chief executive of Intel, said in April that the company was conducting a 90-day review to examine the efficiency of every part of the company. Chuck Mulloy, a spokesman for Intel, said today's action is one of the first to come out of that examination.
He said the cuts affect all regions and parts of the company, adding that analysis showed Intel's management grew faster than its overall employee base in the last five years. After analyzing other companies, Intel decided that it had too many layers of management between employees and top management.
Mulloy did not rule out further cuts as the company continues the efficiency analysis.
In other actions, Intel has agreed to sell off its cell phone and handheld chip businesses to Marvell Technology Group for $600 million, a move that will reduce Intel's head count by 1,400.
The company had 101,000 employees as of last quarter and will update that number during its earnings call July 19, Mulloy said.
Affected managers in the United States will get at least three months' pay plus additional payments for years of service, Mulloy said. They will also receive job-hunting help and a tax-free payment for four months of health care coverage. |
