Intel, the world’s biggest maker of microchips, is due to announce major reductions in its workforce as part of deep cost-cutting measures. The company has lost market share and suffered a 56% slump in second-quarter profits. Various media estimates put the cutbacks at least 10,000. Intel currently employs around 100,000 people. Two months ago Intel cut 1,000 management jobs and reassigned five top executives to new positions. Intel had turnover last year of 32.8 billion euros. The largest European chipmaker is STMicroelectronics with turnover in 2005 of 8.9 billion euros. Philips has just sold a majority holding in its semiconductor operation to a private equity group. Industry analysts said the company is likely to make cuts in loss making non-core businesses, such as its flash memory unit. Intel’s marketing department – which is larger than comparable companies – is also seen as an area ripe for cuts.
Intel job cuts to be announced