Intel cuts 10 per cent of work force

CHIP FIRM Intel said it will shed 9,500 jobs by the end of this year, less than some had expected. It axed 1,000 managerial jobs in the summer, and so the final total will be 10,500 - about 10 per cent of its work force. It's decimation.

The cuts will come from marketing, management and IT support, and are expected to deliver billions of savings for 2007 and beyond.

Earlier this year, Intel cut 1,000 of its managers and has also divested itself of some of its loss making businesses. The chip giant expects the cuts to save $2 billion in 2007 and $3 billion in 2008.

The job cuts will eventually bring the work force down to about 90,000 people.