Intel calls for reductions across the board

SOURCES CLAIMED Intel is set to make large redundancies as part of the restructuring initiated by CEO Paul Otellini two weeks ago.

The sources said that most, if not all divisions have been given a budget reduction number as well as a headcount reduction number. That number is said to range from five to 15 per cent.

An Intel representative told the INQ he was unaware of such plans.

While the budget reductions were telegraphed a long way out, layoffs were not. In fact, Intel management has gone out of its way to deny that it was an imminent thing.

According to one insider, Intel has reiterated there would only be minor headcount reductions when reshuffling, but no real layoffs. Management kept saying that it would put the right people in the right places, and that layoffs would just be an "easy way out".

If the sources are correct, a headcount of five to 15 per cent of staff would involve job losses of thousands of staff with as many as fifteen thousand workers affected. µ

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