SANTA CLARA, Calif., Sept. 5 (UPI) -- California's Intel Corp. will lay off 10,500 workers to cut operating costs by $2 billion in 2007 and better compete against Advanced Micro Devices Inc.
By 2008, the resulting cost savings and lowered operating expenses will reach about $3 billion annually, Intel said Tuesday.
Intel's payroll will fall to about 95,000 by the end of this year, resulting from workforce reductions, attrition and previously announced actions. Then then workforce will decline to about 92,000 by the middle of 2007 -- 10,500 fewer than the company's employee population at the end of the second quarter of 2006. Severance costs will be about $200 million.
"These actions, while difficult, are essential to Intel becoming a more agile and efficient company, not just for this year or the next, but for years to come," said Paul Otellini, Intel president and chief executive officer.
Most job reductions this year will occur in management, marketing and information technology functions, reductions related to the previously announced sale of businesses and attrition.
