Another round of VSS?

Analyst predicts deep job cuts at Intel

Analyst predicts Intel could cut 10 percent of staff because of slumping chip demand

SAN FRANCISCO (AP) -- Intel Corp. could be preparing to lay off as much as 10 percent of its work force and cut its fourth-quarter guidance for the second time, an analyst said Friday, because the economic crisis has caused computer makers to sharply curtail the amount of processors they buy for those machines.

Friedman, Billings, Ramsey & Co. analyst Craig Berger wrote in a note to clients that "recent industry checks" suggest that Santa Clara, Calif.-based Intel is preparing a large work force reduction that could be as high as 8,300 employees, or 10 percent of its global staff.

Intel's last major round of cutbacks came in 2006, when about 10,500 jobs were eliminated as smaller rival Advanced Micro Devices Inc. was stealing market share and cutting deeply into Intel's profits in a bruising price war.

Berger said Intel could save $1 billion a year from a new restructuring and by reducing or eliminating some raises and bonuses because of the company's performance.

An Intel spokesman declined to comment.

Chip companies are hurting now because computer makers are burning through their existing inventories of chips without replenishing them as frequently in a bid to save cash. PC sales growth is slowing. Intel and AMD are the primary suppliers of microprocessors, the brains of personal computers.

Last month, Intel whacked more than $1 billion from its fourth-quarter revenue forecast and lowered its profit forecast because of declining demand. AMD, which has racked up more than $5 billion in losses over the past two years, has also cut its quarterly guidance. The company said revenue would come in about $400 million lighter than expected.

AMD announced last month that it was cutting 500 jobs, about 3 percent of its staff, after having already laid off 1,600 workers, replacing its chief executive and inking a deal with the Persian Gulf state of Abu Dhabi to spin off AMD's factories into a separate company to cut costs.

Intel shares rose 52 cents, or 4.1 percent, to close at $12.96 Friday.

URL: http://finance.yahoo.com/news/Analyst-pred...f-13762104.html

Everybody here is  in PG12 except me ..

I think the cut only focus in US?

My friend told me no increment and promotion. ESP limited to 5% (I don't know what it means).

I think it's really to stock purchase. Cannot remember the name. Sorry ...

ini abit over liao leh ... where u heard 1 ?

this makes a lot of sense to me
better than some "rumors"

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Added on February 13, 2009, 12:57 pm

no one is exempted from global recession ler... gotta think twice before joining any company.