Intel to Lay Off Thousands

symbolset writes to say that "Intel is expecting to lay off 10% of their workforce in a move to become more competitive against rival AMD. From the article: 'The Santa Clara, Calif.-based chipmaker, having suffered several financially disappointing quarters, launched an internal analysis in April to find ways to increase its efficiency. [CEO Paul] Otellini is scheduled to announce the results of the analysis, including the layoff, on Tuesday after the stock market closes, sources familiar with the plans said. Intel has about 100,000 employees worldwide, so the cut could be as high as 10 percent of the company's staff.' Coverage also at The Register, internetnews.com, and more as it develops at Google News. Reuters has the number at up to 16,000."

Re:Don't start with the little guys.

[Anonymous Coward]

Wow, did you um, perhaps, oh I dunno...RTFA before posting? In the article it says that Intel has already cut down about 1,000 management positions, and most of the positions that are going now are marketing positions. Not necessarily "the little guy".....

Re:Ah, yes...the old chestnut

[GalacticCmdr]

By this logic, wouldn't firing *everyone* make you the most productive?

Every company has dead weight - larger companies have more dead weight. I would hazzard a guess that large companies actually have a higher percentage of dead weight because a non-productive person can hide easier within the system. In a smaller company the dead weight is more easily noticed.

The key is to identify the dead weight and jettison then every so often. Intel has such a back-log of getting rid of dead weight they need a major laxative to clear their tubes. The difficulty is to not lose the good with the bad (no baby, yes bathwater) - thus they need to watch out for teacher's pet syndrome (ass-kissing dead weight is kept).

The other boot hitting the floor

[ackthpt]

I think Intel has more class than some other companies.

Despite your optimism, I was spot on with my prediction [slashdot.org].

Many other companies in the past, including one I worked for, begin by slashing managers. Then they consolidate operations under a new management structure and then the big cut happens as the attempt to eliminate "redundant" operations and employees. This is a tricky thing to do because sometimes they cut out keystone employees which are their real foundation and founder a bit. Expect another round in about a year, after Intel senior management have reviewed how things are going.

The disruption will mean Intel will struggle with overcoming internal reshuffling, which is to AMD's advantage.

On a more cynical note, It's worth remembering that a shrinking company is more profitable, in the short term. Ever notice how stock initially goes up when these moves are made?