Intel Online Services ‘redeploys’ up to 600

Works to cut headcount by 26-40 per cent

Intel's Online Services division has rid itself of between 400 and 600 staff, according to sources, out of around 1500 workers.

Affected staffers will be "redeployed", to use Intel's own jargon. They will be reassigned to other parts of the company or helped to find a new post within the company - or outside of it.

The process is part of Intel's overall plan to eliminate 5000 jobs.

IOS warned staff to be prepared for the cuts early last week. Meetings to reveal details of the programme were scheduled to be held last Friday, and we understand official notices went out to individual staff members yesterday.

IOS is Intel's Web hosting services business, and hasn't done too well for itself.

"Despite everyone's best efforts, business conditions for IOS have not improved," it recently told staffers. "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."

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. ®

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