Intel Announces Restructuring

by Marco Chiappetta — Tuesday, September 05, 2006, 06:00 PM EDT

Intel Announces Restructuring

Expects to Reduce Costs and Operating Expenses by $2 Billion in 2007, by $3 Billion in 2008

SANTA CLARA, Calif., Sept. 5, 2006 - Intel today announced plans for restructuring following an analysis of the company's structure and efficiency. As a result of the restructuring, the company expects to generate savings in costs and operating expenses of approximately $2 billion in 2007. In 2008 the company expects savings from this restructuring to grow to approximately $3 billion annually.

The savings are a combination of non-workforce related steps and a significant reduction in Intel's workforce. The company's employee population will decline to approximately 95,000 by the end of this year, resulting from workforce reductions, attrition and previously announced actions. The workforce will decline to approximately 92,000 by the middle of 2007 - 10,500 fewer than the company's employee population at the end of the second quarter of 2006. In addition to the savings from the workforce reduction, the company expects savings in merchandising expenses, capital and materials.

"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 chief executive officer. READ MORE...

Tags: Intel, CES, restructuring

Marco Chiappetta

Marco's interest in computing and technology dates all the way back to his early childhood. Even before being exposed to the Commodore P.E.T. and later the Commodore 64 in the early ‘80s, he was interested in electricity and electronics, and he still has the modded AFX cars and shop-worn soldering irons to prove it. Once he got his hands on his own Commodore 64, however, computing became Marco's passion. Throughout his academic and professional lives, Marco has worked with virtually every major platform from the TRS-80 and Amiga, to today's high end, multi-core servers. Over the years, he has worked in many fields related to technology and computing, including system design, assembly and sales, professional quality assurance testing, and technical writing. In addition to being the Managing Editor here at HotHardware for close to 15 years, Marco is also a freelance writer whose work has been published in a number of PC and technology related print publications and he is a regular fixture on HotHardware’s own Two and a Half Geeks webcast. - Contact: marco(at)hothardware(dot)com