Friday, September 04, 2015
Search
  
Submit your own News for
inclusion in our Site.
Click here...
Breaking News
Fujitsu Doubles Same-Cell Wireless Communication Capacity for 5G
Justice Department Hardens Cellphone Tracking Rules
ALCATEL ONETOUCH Unveiled Its Latest Smartphones And A Smartwatch at IFA
Firefox for iOS Now Available for Preview
ZTE Axon Elite Smartphone Coming To Global Market
Updated Google Street View App Has 360-degree Images
Samsung Seeks Piece of Nascent Smartwatch Market With New Gear S2 Smartwatch
Ricoh Unveils Upgraded THETA S Spherical Camera
Active Discussions
How to back up a PS2 DL game
Copy a protected DVD?
roxio issues with xp pro
How to burn a backup copy of The Frozen Throne
Help make DVDInfoPro better with dvdinfomantis!!!
Copied dvd's say blank in computer only
menu making
Optiarc AD-7260S review
 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
Intel Media Server Studio 2016 Enables Faster Video Transcoding and Transition to HEVC and 4K
Intel Invests US$50 Million to Advance Quantum Computing
Intel Says New Skylake Processors Are The Best Ever Made
Intel Talks About Skylake At IDF
Intel Outlines Expanded RealSense And Optane Technologies At IDF
Intel To Bring Xeon Processors to Notebook PCs
Researcher Discovers Flaw in Intel Processors
Intel Teases With Skylake Processor Family and Z170 Express Chipset Debut
Intel Releases 3rd Gen Wireless-AC 8260 for Windows 10
Intel Skylake Processors To Provide Significant Graphics Boost
Intel And Rackspace To Promote The Benefits of the Cloud Through New Initiative
Intel Hits Q2 Financial Target, Pushes Back Transition to 10nm

Most Popular News
 
Home | News | All News | Reviews | Articles | Guides | Download | Expert Area | Forum | Site Info
Site best viewed at 1024x768+ - CDRINFO.COM 1998-2015 - All rights reserved -
Privacy policy - Contact Us .