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Intel to cut 2000 more jobs

Posted on Friday, October 19 2007 @ 01:25:01 CEST by

Intel announced a 43% profit increase in the third quarter of this year but the firm is still not ready with trying to further optimize their business. According to eWeek Intel is preparing to slash 2000 more jobs to cut costs:
CEO Paul Otellini and executives told analysts and reporters during a conference call Oct. 16 that the Santa Clara, Calif., company expects to save about $1 billion in 2008 on payroll cuts and a switch from the 65-nanometer processors to the new 45-nanometer processors, which are cheaper to manufacture.

The strategy of reducing and saving began in 2006, when Intel's employee roster stood at about 94,000. It now stands at 88,000.

The payroll reduction should not affect the price of notebooks and desktops directly, as Intel is likely to roll any savings into the research and development of more complex microprocessors, while keeping its profit margins high and shareholders content as it battles the slimmer rival Advanced Micro Devices in the market.



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