10,500 Intel staff to be let go by mid-2007
As predicted, Intel has announced mass job cuts that will see 10,500 employees leaving the company by the middle of next year. Out of the 10,500, 7,500 staff will be departing Intel this year, partly as a result of the company's sale of its XScale and telecommunications businesses as well as pre-announced managerial layoffs. The remaining 3,000 employees will leave the company in the first half of next year, leaving Intel's work force nearly 10% smaller in mid-2007 than in the middle of this year. Intel says the cuts will largely target management, marketing, and IT personnel, and that the diminished work force will save the company around $2 billion next year and $3 billion in 2008. Considering Intel's disappointing financial results as of late, the savings might help the company's net income recover.