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Intel to lay off 16,000 workers?

Heard on the grapevine...

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Is Intel about to rid itself of 16,000 workers - just over 16 per cent of its global workforce - later this month? So suggest whispers doing the rounds among Silicon Valley's technology community at the moment.

That's what blogger Omid Rahmat claims at least. It's certainly no secret that Intel is examining every part of its business for signs of under-performance - CEO Paul Otellini said as much in April this year.

"In terms of non-performing businesses, anything with a bracket will be looked at," he said. "It would be too simplistic to simply do a reduction in force," he added, surely implying the business review will come in addition to job cuts?

So far, Intel has closed down a research facility in Glasgow, and analysts have suggested it will drop its Flash memory and comms chip operations. In November 2005, Intel partnered with Micron to form a Flash-making JV in part to supply Apple with Flash chips.

According to a TGDaily report, Otellini will speak to the troops on 15 June - a likely date, it suggests, for the redundancies announcement.

Intel currently employs around 99,900 people around the world. ®

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