Feeds

Intel Online Services warns workers of job ‘redeployments’

Redeployment not a layoff - unless we can't find a job for you...

  • alert
  • submit to reddit

Designing a Defense for Mobile Applications

Staff at Intel's Online Services operation are preparing to hear the worst on Friday morning, when the company is expected to announce major cuts to the division's headcount.

The scale of the reduction is not yet known, but according to an internal email sent to IOS staffers today and seen by The Register, it's going to be "substantial".

The email implies that the reductions at IOS will simply involve moving staff to other parts of the corporation - staff will be redeployed, rather than released from their duties. The move, it says, is nothing to fear: "Redeployment is not a layoff, it is a paid-for internal job search."

Then again, it goes on to say that the process may also be "coupled with outplacement services" and could involve "some separation pay if no job is located". And given the email opens with a direct reference to Intel's plan to reduce its worldwide workforce by 5000, the signs are not good.

The omens aren't much better for staffers who remain within the company. "Although some employees may not be able to find jobs for which they are qualified, many do find other positions and others find temporary assignments while continuing to look for a full time position," chirps the email.

The reason for the cuts is explained more baldly: "Despite everyone's best efforts, business conditions for IOS have not improved. Our revenue is not coming in line with our spending and we have no choice but to substantially reduce our headcount and spending in order to meet the targets set for us by the corporation."

This despite some big-name customers like the the BBC, EMI, Terra Lycos and... er... eVineyard.com.

Still, we're not entirely surprised. Intel's attempt to push into the burgeoning online services market has largely failed to deliver. Last year, its joint venture with SAP, Pandesic, folded " due to slower than anticipated market acceptance of business-to-consumer e-commerce solutions". Earlier this year, IOS shut down iCat its e-commerce and services operation targeted at small to medium-sized businesses.

Instead, IOS would focus on providing services - including the iCat software - to ASPs, and it launched a scheme in March to help its ASP customers market themselves.

Clearly it hasn't worked too well, hence the way IOS' "revenue is not coming in line with our spending".

IOS employs over 1500 staff worldwide. Here in the UK, IOS operates a 100,000sq ft server farm capable of holding 10,000 servers and employing 250 people. Whether it is or not isn't known, but it's certainly not likely to be after the meetings to be held on Friday 4 May in the US and EMEA regions at which staffers will hear what their fate is to be. ®

Related Stories

Intel CPU biz 'stabilises'
Intel ate my iCat

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.