“Leaked memo” claims Intel's vendor of choice rating slumped in Q3

Craig Barrett's report to troops says job cuts will continue

Ginger group FACE Intel has published what it claims is an internal memo from CEO Craig Barrett to his staff worldwide. According to the memo, Barrett warned his staff against overspending on expenses claims but thanked them for increasing turnover and profit. At the same time, Barrett gave Intel staff an update on the progress of staff reductions at the chip giant. The memo, it is alleged, quotes Barrett as saying staffing levels were 64,500 at the end of the third quarter, but Intel would continue with cutting another 3,000 people and will also make some redundancies at its Massachusetts and Puerto Rico plants. But the bad news for Intel, if the report is true, is that its traditional vendor of choice rating fell to 87 per cent in Q3. The figure stood at 93 per cent in the same quarter a year before. Customers criticised Intel for a lack of products, missed delivery schedules and line down situations because of Intel roadmap conversion strategies, the report said. According to the memo as quoted, the only way Intel employees will win an additional day’s pay under its cash bonus programme (CBP) is if it wins a VOC rating of 90 per cent or more during separate six month periods. Intel staff were also asked to use their email systems “wisely” and “professionally”. No-one from Intel was available to comment on the veracity or otherwise of the memo. ®

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