Intel Corp. is set to announce sweeping job cuts later on Tuesday.
September 5, 2006 (Press Release) --
KUALA LUMPUR (Reuters) - Intel Corp. (Nasdaq: INTC - news), the world's biggest microchip maker, is set to announce sweeping job cuts later on Tuesday, the Financial Times said, amid speculation that up to 10 percent of its staff could go.
Intel is expected to slash its 100,000-strong workforce after second-quarter net profit fell 56 percent as it cut prices to compete with arch rival Advanced Micro Devices Inc. (NYSE:AMD - news).
"One person close to the company said employees were due to be briefed on the situation today when they return from the Labor Day holiday," the Financial Times said in its Tuesday edition.
The report quoted market estimates that around 10,000 workers could lose their jobs under a new, global round of layoffs. In Malaysia alone, one newspaper reported this week, up to 2,000 Intel workers would be offered voluntary layoffs.
Some Intel Malaysia employees had already received their offers, the Star newspaper said on Monday. It added that an announcement would be made to Malaysian staff this week.
An Intel Corp. spokesman declined to comment.
"We are not going to confirm anything," Intel spokesman Chuck Mulloy said by telephone from the company's headquarters in Santa Clara, California, on Monday night, U.S. time.
"We have not announced anything yet and when we do, we will put out a press release."
Intel employs around 10,000 workers in Malaysia, the Star said, adding that Intel's global plans could see 10,000-20,000 Intel workers leave the company.
Previous estimates by Wall Street analysts have put the size of the cuts anywhere from a few thousand to 16,000 employees.
"We are in the process of conducting a structural and efficiency study of our organization," Mulloy said. "We are committed to announcing the results of that sometime on the third quarter and we are on track to do that."
Intel is expected to slash its 100,000-strong workforce after second-quarter net profit fell 56 percent as it cut prices to compete with arch rival Advanced Micro Devices Inc. (NYSE:AMD - news).
"One person close to the company said employees were due to be briefed on the situation today when they return from the Labor Day holiday," the Financial Times said in its Tuesday edition.
The report quoted market estimates that around 10,000 workers could lose their jobs under a new, global round of layoffs. In Malaysia alone, one newspaper reported this week, up to 2,000 Intel workers would be offered voluntary layoffs.
Some Intel Malaysia employees had already received their offers, the Star newspaper said on Monday. It added that an announcement would be made to Malaysian staff this week.
An Intel Corp. spokesman declined to comment.
"We are not going to confirm anything," Intel spokesman Chuck Mulloy said by telephone from the company's headquarters in Santa Clara, California, on Monday night, U.S. time.
"We have not announced anything yet and when we do, we will put out a press release."
Intel employs around 10,000 workers in Malaysia, the Star said, adding that Intel's global plans could see 10,000-20,000 Intel workers leave the company.
Previous estimates by Wall Street analysts have put the size of the cuts anywhere from a few thousand to 16,000 employees.
"We are in the process of conducting a structural and efficiency study of our organization," Mulloy said. "We are committed to announcing the results of that sometime on the third quarter and we are on track to do that."
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