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Up to 6000 jobs axed at Intel as sales drop
Bill Condie22 Jan 2009
Bellwether technology company Intel is slashing up to 6000 jobs — more than 6% of its workforce — after a fall in fourth-quarter sales.
The chipmaker is closing plants in Malaysia and the Philippines, its last remaining factory in Silicon Valley, California, and one in Oregon.
The factories all make older-style chips, and Intel says it will not be closing any more-advanced plants. It said last week that fourth-quarter revenue had fallen 23% in a year, with profit down 90%.
Intel is seeing its big business customers scale back demand and PC buyers delay purchases. It is also battling competition from cheaper chips made by Advanced Micro Devices (AMD). That has forced it into price cuts of up to 40%.
AMD said earlier this month it expected to post additional restructuring charges for 2008 and 2009.
Intel is seen as a key indicator of the health of the overall PC industry, and to a lesser degree the mobile phone industry, since its products are a key component for most computer manufacturers.
Reader views (1)
Are all these jobs already axed or going to be axed. there is a lot of difference. Going to be axed over a period of few months is not exactly same as jobs already axed.
- Kanan, mountain view, 23/01/2009 05:45
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