The economy train is still going strong, just without passengers. Intel is now planning to lay off up to 6,000 employees and close some of its facilities.
Intel plans to cut up to nearly 6,000 jobs and close four facilities in a move that will see the chip giant restructuring its manufacturing operations. Announced on Wednesday, two assembly and test facilities – one in Penang, Malaysia and another in Cavite, Philippines, will slowly be brought to an end. Intel also plans to halt production at two wafer-production plants – Fab 20, which is an older 200mm wafer fabrication plant located in Hillsboro, Oregon, and D2, a facility in Santa Clara, California.
These changes will affect between 5,000 and 6,000 employees of Intel worldwide according to Intel. However, not all of these employees will be out of work as Intel plans to offer some employees a chance to relocate and take up work at other facilities not included into the restructuring plans.
Intel will gradually be closing the four facilities between now and the end of 2009. According to Intel the closures are designed to “align its manufacturing capacity to current market conditions.”
For the first time Intel has seen its profits plunge nearly 90 percent from a nearly a year previous – falling short of Wall Street estimates. CEO Paul Otellini told employees last week that the company could very well see its first quarterly loss in 22 years.
I don't feel sorry for the company at all...
And how many are going to be open.
That is a VERY freaking good question... it appears that the government will have to step in somehow and tell these companies "Stop laying off workers, decrease executive compensation!" at some point in order to get them to do what they SHOULD be doing.