Sunday, September 23, 2018
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Comcast is the Winner in Auction for Sky
Fujitsu Algorithm Achieves Compresses Images by 1,000:1
Samsung Galaxy J4+ and J6+ Launched in India
Renesas to License Chip IP As It Seeks For New Revenue Sources
Razer Ifrit Packs a Professional Quality Microphone into a Low-profile Broadcast Headset
Micron, Toshiba Chips Found Inside New iPhones
3DMark Adds Ray tracing Benchmark
Adobe to Acquire Marketo for $4.75 Billion
Active Discussions
Which of these DVD media are the best, most durable?
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
Help make DVDInfoPro better with dvdinfomantis!!!
menu making
Optiarc AD-7260S review
cdrw trouble
 Home > News > General Computing > Intel A...
Last 7 Days News : SU MO TU WE TH FR SA All News

Wednesday, September 06, 2006
Intel Announces Restructuring Plan


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.

Most job reductions this year will occur in management, marketing and information technology functions, reductions related to the previously announced sale of businesses, and attrition. In 2007, the reductions will be more broadly based as Intel improves labor efficiency in manufacturing, improves equipment utilization, eliminates organizational redundancies, and improves product design methods and processes.

In 2008, the company expects the cost and operating expense savings from this restructuring to grow to approximately $3 billion as it achieves the full-year run rate on the projects implemented in 2007. In addition, Intel expects to achieve a capital expenditure avoidance of $1 billion by better utilizing manufacturing equipment and space. The company expects that approximately 25 percent of the project's savings in 2007 will reduce cost of sales, and the rest will reduce operating expenses.

The company expects severance costs to total approximately $200 million, offsetting some of the expected savings from the project's implementation.

Intel is currently in its quiet period, so an update to its business outlook will not be made at this time. Further information concerning savings and costs related to the restructuring project will be provided in quarterly earnings releases and related business outlook estimates. The earnings release for the third quarter of this year is scheduled for publication Oct. 17.

Analysts have said Intel needs to take drastic action to reverse sliding profits and halt steady market share gains by its far smaller rival, AMD, that gathered steam in 2005.

Keen to regain market share and the technological lead over AMD, Intel has slashed prices and revamped its entire line of microprocessors for desktop, laptop and server computers in recent months.


Previous
Next
Samsung Promises Brighter Images For Mobile Devices        All News        Mac Support for Microboards GX-1 DVD/CD Publisher
Apple May Launch Movie Downloads     General Computing News      Microsoft Officially Sets Pricing for Windows Vista

Get RSS feed Easy Print E-Mail this Message

Related News
Alibaba and Intel Cloud Deliver Joint Computing Platform for AI Inference at the Edge
Samsung AI Forum Underlines the Importance of Unsupervised Learning
Facebook Confirms Internal Silicon Team
Intel Puts High Hopes on 5G
Shortage of Intel CPU to Impact Notebook Shipments, Causing Further Price Decline in the Memory Market
Intel Acquires NetSpeed Systems for Chip Design
Cisco Unveils Server for Artificial Intelligence and Machine Learning
Intel to Outsource 14nm Chip Production: report
Samsung Opens a New AI Center in New York City
New Google Tool Spots Child Abuse in Photos
New 8th Gen Intel Core Processors Optimize Connectivity, Performance, Battery Life for Laptops
Samsung Extends Semiconductor Market Lead in 1H18

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2018 - All rights reserved -
Privacy policy - Contact Us .