Intel to shut sites and cut up to 6,000 jobs

[enigma067]

Intel to shut sites and cut up to 6,000 jobs
By Ritsuko Ando Ritsuko Ando

2 hrs 44 mins ago

NEW YORK (Reuters) – Intel Corp (INTC.O) said on Wednesday it would close manufacturing plants in Malaysia and the Philippines, as well as its only remaining factory in Silicon Valley, cutting as many as 6,000 jobs.

The announcement comes a day after the world's largest maker of microprocessors used in personal computers slashed prices on a number of its chips and a week after it reported a decline in fourth-quarter revenue.

Intel said it would close two assembly test facilities in Penang, Malaysia, and one in Cavite, Philippines.

It will also halt production at a wafer fabrication facility in Hillsboro, Oregon, as well as its Santa Clara, California plant -- a factory connected to its headquarters and the only one left in Silicon Valley.

The actions will result in a reduction of 5,000 to 6,000 jobs, Intel said. It ended 2008 with around 84,000 employees.

Not all cuts at the affected plants will lead to job losses and some workers will be offered positions at other facilities, it said, adding that the restructuring will take place between now and the end of 2009.

"It's not a surprise given that their first quarter is probably going to be challenging, and they're trying to do what they can to cut costs in places that make sense," said Taunya Sell, an analyst at Ragen Mackenzie, a division of Wells Fargo.

Intel said it was not halting production at any of its more advanced factories.

Intel shares rose about 1 percent to $13.40 in after-hours trading, after rising 3.11 percent to close at $13.26 on the Nasdaq stock market.

Last week, Intel said its fourth-quarter revenue fell 23 percent from the year-ago period and profit tumbled 90 percent. It also held back on giving detailed quarterly forecasts, citing economic uncertainty.

Analysts have been wary about Intel's outlook for the year as chip sales slide. PC makers and other technology companies have been trimming inventory and cutting back on purchases.

Intel also faces competition from new, cheaper chips made by Advanced Micro Devices Inc (AMD.N).

On Tuesday, Intel said it was lowering prices on some of its processors, including price cuts of up to 40 percent on some of its higher-powered, faster quad-core chips.

AMD said earlier this month that it expected to post additional restructuring charges for fiscal 2008 and 2009.

(Additional reporting by Robert MacMillan; Editing by Andre Grenon)

http://news. yahoo.com/ s/nm/20090122/ bs_nm/us_ intel

 

[jimmysmitty]

Yea no suprise. Much like how AMD also did a but of cutting back earlier by cutting 1100 jobs. May not seem like as much but in terms of size and how many employees that Intel has compared to AMD, its almost the same.

 

[f111]

If only these companies saved more of their money and invested into more liquid assets instead of giving as much as they can to the stakeholders...then for the dips in the economy they could retain their workforce. Sigh....greed.

 

[jamesgoddard]

The truth to this is the fabs they are closing are a couple of little, low volume, test setups tbh - and they don't need them...

No point any company holding onto assets and employees that have no use, yes it's sad for people being let go, but it's got to happen

 

[fazers_on_stun]

If only these companies saved more of their money and invested into more liquid assets instead of giving as much as they can to the stakeholders...then for the dips in the economy they could retain their workforce. Sigh....greed.

Intel has tens of billions in cash & fairly liquid assets they can call upon if needed.

Unfortunately AMD has only billions in debt and no ability to get a loan if needed.

With MSFT and now probably IBM laying off thousands, PC sales tanking this quarter and likely for the year, there are going to be some casualties before the end of this year I'm afraid.

AMD has its turn up at bat tonight, with their Q4 report and presumably some guidance for this quarter and year.

 

[f111]

If things get worse I wonder where these people will get jobs. Is demand for programmers and IT going down the drain? Do we all now get reeducated and go for accounting or get our MDs? I wonder where the economic outlook is going. People probably buy too many computers anyway so these sales slumps or ok. But what is needed for a healthier economy? More organic food production. Sure. More doctors I suppose, dare I say more lawyers? Well they're just expensive, but I dont think they're needed.

I don't know if the cost of medical care will really go down with an infusion of doctors do you? There's just so much equipment and support costs involved I don't see the prices dropping much.

 

[fazers_on_stun]

If things get worse I wonder where these people will get jobs. Is demand for programmers and IT going down the drain? Do we all now get reeducated and go for accounting or get our MDs? I wonder where the economic outlook is going. People probably buy too many computers anyway so these sales slumps or ok. But what is needed for a healthier economy? More organic food production. Sure. More doctors I suppose, dare I say more lawyers? Well they're just expensive, but I dont think they're needed.

I don't know if the cost of medical care will really go down with an infusion of doctors do you? There's just so much equipment and support costs involved I don't see the prices dropping much.

I doubt all those programmers and IT personnel will go to medical school - that costs something like $40K per year. Instead, I think Obama will give them pickaxes and shovels for the "shovel-ready" infrastruture projects (at least, the IBM, MSFT, AMD, INTC, etc etc laid-offs in the USA). Lotsa bridges, highways, etc need repairs around here .