Intel to cut around 10,000 jobs worldwide

Mumbai: World's No 1 computer chip maker, Intel Corporation, is cutting 10,500 jobs - about 10 per cent of its work force - as the technology giant sheds flab to fight competition. Intel employs around 99,900 employees worldwide.

Intel said the restructuring, which follows a review of the company''s structure and efficiency, would help it save $1 billion this year, $2 billion next year, and $3 billion in 2008.

The job cuts - Intel's largest in 21 years - along with other cost-cutting measures would help the company bolster its financials and emerge stronger to fight competition.

The reductions would hit management, marketing and information technology workers more, but they would not be concentrated in any specific geographic area, Intel said.

Intel said it would lay off 1,000 managers in July and 2,000 workers in two business units that it sold over the past few months. Another 2,000 jobs will disappear through attrition.

A Malaysian newspaper had on Monday reported that Intel would offer voluntary layoffs to up to 2,000 workers in that country, where the company has employed 10,000 people for assembly, packaging and testing.

Intel also has major operations in Israel, Ireland, and the US states of Oregon and Arizona.

With 199 offices around the world Intel had revenues of $3.8 billion in 2005.

Intel has been facing increasing competition from its smaller rival, Advanced Micro Devices Inc, which reported record sales of $5.8 billion in 2005, up 17 per cent from 2004.

During the second quarter of the current year ended July 2, 2006, AMD had sales of $1.22 billion, operating income of $102 million, and net income of $89 million.