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Print 21 comment(s) - last by TwistyKat.. on Sep 5 at 7:06 AM

More job cuts in an effort to boost profits and efficiency

According to reports, Intel could be announcing a major job slashing campaign as close as next Tuesday. In fact, as many as 10,000 jobs are expected to be eliminated, equating to roughly 10% of Intel's entire global staff force. Intel has been conducting internal audits and analysis about itself since April of this year. The company commented that it had found itself to be lacking in efficiency in many areas, mainly in sales and marketing. Intel mentioned that its ratio of sales to marketing staff was too high, and it's likely the majority of the jobs being cut will be from marketing.

Intel's CEO Paul Otellini is expected to announce the results of the internal analysis this Tuesday, after stock markets close. Although current details of the layoffs are scarce, Intel mentioned that layoffs are expected. The company overall did not perform well financially in the last several quarters. Although news of upcoming processor releases and the release of Core 2 processors was a magnificent marketing boon for Intel, the company still faces challenges.

DailyTech previously reported that Intel gave roughly 1,000 managers the pink slip in an effort to improve company efficiency -- "too many chiefs and not enough Indians" as Danny Hsu, General Manager of Tyan once said. Intel this year sold its Xscale processor division to Marvell. The Xscale series was a successful line of processors for hand-held devices. Intel's media and signaling division also flew the coop earlier this year. Eicon purchased the division from Intel.



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INTC
By gramboh on 9/1/2006 1:48:35 PM , Rating: 2
Might be a good time to buy Intel stock with C2D ramping up, Merom out, Kentsfield and others on the horizon and management doing effective cost control (selling off crappy divisions, reducing crappy departments like sales/marketing).




RE: INTC
By Christobevii3 on 9/1/2006 3:04:50 PM , Rating: 2
Had my mom get some at $18.00 and it is around $19.80 today, can't wait till december when it will be like $23.00


RE: INTC
By stromgald on 9/1/2006 4:16:19 PM , Rating: 2
Yeah I got in a little under that (wish I put in more money), but I'm thinking this announcement will cause prices to drop. Most invenstors don't like to see layoffs, unless its spun and sold really well as a good cost cutting measure. Maybe they need to have some of their marketing team do the press confrence.


RE: INTC
By TwistyKat on 9/1/2006 4:24:32 PM , Rating: 2
quote:
can't wait till december when it will be like $23.00


Eh. Boring.

You should assume some high risk/reward potential. Start buying Sun. If their marketshare ever starts trending upward and if Niagara gets accepted, it'll be almost as good as winning the lottery.


RE: INTC
By stromgald on 9/1/2006 5:35:52 PM , Rating: 3
It might be boring, but its fairly safe since Intel is a fairly stable company (but then again, that's what they said about Enron). $23 might not seem like much, but from $18, that's over a 25% return in less than a year. Not too bad if you ask me, and alot better than the 6% return you get on CDs, savings accounts, bonds, etc.


RE: INTC
By hans007 on 9/3/2006 6:27:00 PM , Rating: 2
buying intel is amuch better move than buying sun. intel even pays a 2% dividend.

i mean the risk reward on this is fantastic, it could concievably be $25 at the end of the year. in fact last december it was $27 and they've corrected many of the problems that led to their fall to $17ish a month ago.

the back to school and xmas seasons are just about to happen.

and yes im putting my money where my mouth is, i have a ton of intel shares.


RE: INTC
By TwistyKat on 9/5/2006 7:06:28 AM , Rating: 2
quote:
buying intel is amuch better move than buying sun


Buying Intel is less risky than buying Sun - not better. Any future reward with Intel shares is not something you are going to be able to brag about at a cocktail party.

Boring.



So
By R Nilla on 9/1/2006 1:19:19 PM , Rating: 3
will the laid off employees be notified in person, via telephone, snail mail, telegram, email, or text message?




RE: So
By Christobevii3 on 9/1/2006 1:31:31 PM , Rating: 3
If only western union didn't get rid of the singing telegram, that would be the best!


RE: So
By KingGheedora on 9/1/2006 2:20:21 PM , Rating: 5
No, you see, there's an error in payroll. They shouldn't be getting paychecks. They're just correcting an error.


Doesn't Make Sense
By DrDisconnect on 9/1/2006 1:45:54 PM , Rating: 2
If the ratio of Sales to Marketing staff is too high, how is firing predominantly marketing staff going to fix that? Or are my simple math skills failing me?




RE: Doesn't Make Sense
By Tiamat on 9/1/2006 1:59:46 PM , Rating: 2
:D

They should be firing the sales people if the ratio of sales to marketing is too high. If the ratio of sales to marketing is too low, then fire the marketing people.



RE: Doesn't Make Sense
By Phynaz on 9/1/2006 2:29:52 PM , Rating: 2
The news bit is wrong. The actual article says they have too many marketing people.


RE: Doesn't Make Sense
By darkfoon on 9/3/2006 4:17:12 AM , Rating: 2
That's what I initially thought, but what the article is saying is the ratio of sales (of products) to marketing staff (people) is very high.



This might be good for AMD
By Xenoterranos on 9/1/2006 1:35:26 PM , Rating: 2
because now they have a pretty good pool of marketers to hire from!




RE: This might be good for AMD
By hstewarth on 9/1/2006 3:47:19 PM , Rating: 2
Can you read? The people that laid off are parts of company that are not selling well and like xScale - the entired division is being sold to another company.

xScale is not necessary anymore, becaue intel can make Core chips so low power that these chips can be in PDA's.. remmeber the 9v Core chip.


RE: This might be good for AMD
By hstewarth on 9/1/2006 3:51:40 PM , Rating: 2
Even for extra marketting, these are likely to be stuff that doesn't sell or need to be market.

I wish this site had a way to edit posts.. I didn't read all of it.. But I am making my correction. I thought main reason for the layoff was for parts of company that was not producing - anyway if Marketting is not producing, then you don't want them. AMD would be crazy to have them.


We "fixed the glitch"
By MonkeyPaw on 9/1/2006 2:32:28 PM , Rating: 3
Maybe they are just laying off all the staff that used to strong-arm OEMs like Dell, HP, etc. Now that Intel is in the anti-trust spotlight, they have no use for such vigilante sales tactics. :D




By L1NUXownz1fUR1337 on 9/3/2006 1:06:21 PM , Rating: 3
I guess all appletech readers are cold heartless ba57ard5.
I also guess that most of you work at walmart.

Since none of you will know what it's like, let me tell you:

People inside never worried about getting laid off before. Afterall the Itanic is a unsinkable ship. Working there recently felt like you were on a sinking ship. People were worried about losing their jobs/ their source of income.
Try to understand how hard it is for your american brothas ( except for the marketing and sales BSers ).

If the engineers produce a crappy product ( pentium 4? ) how can you expect your sales and marketing to unload it?

Will the ceo take a pay cut now there are less pawns?

It was hilarious when he got rid of a lot of people directly reporting to him so he could focus on his golf... uh i mean lay off planning.





small fix.
By ahodge on 9/1/2006 2:57:05 PM , Rating: 2
"Intel's media and signaling division also flew the coupe earlier this year."

Coupe should be coop. Like a Chicken Coop. Coupe is a style of car.




What? No email?
By microAmp on 9/1/2006 3:39:39 PM , Rating: 2
Makes me wonder if they emailed them at all...

http://www.dailytech.com/article.aspx?newsid=4020




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