Thursday, January 22, 2009

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Intel to lay off 5,000, close five plants

Source: SanJose Mercury News
Amid speculation it may be close to reporting its first quarterly loss in 22 years, Santa Clara computer chip maker Intel today said it will lay off at least 5,000 employees worldwide and shut five of its manufacturing operations.

As part of a corporate-wide restructuring, the world biggest chip maker said it will cease plant operations in Santa Clara, Hillsboro, Oregon, Penang, Malaysia and Cavite, Philippines.

The closures "when combined with associated support functions, are expected to affect between 5,000 and 6,000 employees worldwide," the company said in a prepared statement.

Although some of the affected employees may be offered positions at other Intel facilities, company spokesman Chuck Mulloy said at least 5,000 of the workers would lose their jobs.

About 400 Bay Area employees will be affected by the plant shutdowns; Mulloy said it's likely many of them would be laid off. Intel had 84,000 employes at the end of last year.

The last time the company laid off workers was in 2006, when it let go about 10,000 employees as part of a broad corporate restructuring.

Mulloy added that Intel executives have been considering making the changes for some time, but that "this whole thing has been accelerated by the current economic climate."

The company's statement said the changes are expected to take place over the course of the year.

Intel made the announcement after the stock market closed. Its shares rose 40 cents to $13.26 at the close and an additional 14 cents in early after-hours trading.


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