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Intel Chops 10% Of Workforce

9/06/2006 09:47:00 AM Eastern

San Jose, Calif. — Intel announced yesterday it would cut 10,500 workers from its payroll as part of a massive restructuring effort.

The company said half of the cuts will be completed by the end of the year with the remainder being completed in 2007. It will initially affect the ranks of Intel’s management, marketing and IT roll, most of which are associated with previously announced cuts and the sale of several business, but next year the lay offs will expand to include manufacturing and design jobs. Prior to the restructuring, Intel employed just over 100,000 people.

Intel anticipates a $2 billion savings next year and $3 billion in 2008.

“These actions, while difficult, are essential to Intel becoming a more agile and efficient company, not just for this year or the next, but for years to come,” said Paul Otellini, Intel president and CEO.