Intel to decimate workforce - report

The AMD effect

CNET has come out as the first organ willing to put a firm number on Intel's alleged upcoming mass layoff. The online rag reckons that up to 10,000 workers will be cleaved from Intel's payroll. Word of the layoffs should arrive next Tuesday after the stock markets close their regular trading sessions.

Rumors of large layoffs at Intel have swirled ever since CEO Paul Otellini said he would examine all possible cost cutting options. So far, Intel has relieved itself of two business units and fired 1,000 managers. According to CNET, things will get worse for the Intel regulars next week when the company decimates its 100,000 strong workforce.

The company has scheduled an internal web cast for Tuesday, which doesn't seem like an encouraging sign. "Intel CEO Paul Otellini will present employees a summary of Intel’s structure and efficiency analysis," the company told its staff, according to a note seen by El Reg.

"We have said before that we will disclose the results of our structural review sometime in the third quarter," Intel spokesman Chuck Mulloy told us. "We won't comment on specific dates or plans or results."

European papers as well as dailies in states such as Oregon have speculated that Intel would make large cuts in the next couple of weeks. Workers have apparently sensed that the axe is about to fall and fall hard.

The reality of the situation though is that Intel cannot support its current workforce and expect to post glossy financial results. AMD has came out of nowhere to claim 25 per cent of the x86 server chip market and increased its desktop processor share. If these trends continue, Intel can expect to own 60- to 70 per cent of the x86 market as opposed to the 80- to 90 per cent that it's used to. ®

Sponsored: How to determine if cloud backup is right for your servers