Intel To Cut About 5000 Jobs Company Wide

From reuters “Intel to reduce global workforce by five percent in 2014

Intel Corp plans to reduce its global workforce of 107,000 by about 5 percent this year as the chipmaker, struggling with falling personal-computer sales, shifts focus to faster-growing areas, a company spokesman said on Friday.

The announcement, equivalent to over 5,000 positions, comes a day after Intel posted a fourth-quarter earnings report that did little to dispel concerns about a slowing PC industry.

“This is part of aligning our human resources to meet business needs,” spokesman Chris Kraeuter told Reuters on Friday.

The job reductions may include early retirement, attrition and other options, Kraeuter added. He declined to say whether details of the changes had been announced internally.

I predict more layoffs and not just in New Mexico and it sounds like they will be in the first quarter of 2014.

In its report on Thursday, Intel forecast March-quarter restructuring charges of $200 million, a portion of which could be earmarked for severance pay.

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Orthodox Jews Demonstrate Against Intel

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AMD isn’t the only one that dislikes Intel. Some Jewish persons don’t like Intel too..

Hundreds of ultra-Orthodox Jews have demonstrated at Intel Corp’s new electronic chip plant in Israel in protest against work taking place at the site on the Jewish sabbath.

The protesters said on Saturday it was a desecration of the Sabbath, which runs from Friday night to Saturday night.

They were dispersed by police and a company spokesman said the plant was operating within the law and would continue to do so.

Intel, the world’s biggest chip manufacturer, opened the west Jerusalem plant for installation work before its inauguration on Sunday.

Where these people don’t like Intel for religious reasons, some in Coralles, New Mexico think Intel is poisoning them.

Please understand that the new chemicals that are being used up there are causing illnesses as serious as we had in the 1990s. Vison is blurred, eyes are burning and skin is peeling off the eylids. One breath of the toxic air causes choking, coughing and in Patricia’s case gasping for air. The toxins collect in her west side patio and in her house. With me it settles all around my property and comes in the house. This morning my eyes were swollen shut and inflamed I could hardly see. Each day my vision seems to be getting worse

I should note that the State of New Mexico cleared Intel of making people sick in 2004 but that decision was very controversial.

1000 People To Be Laid Off At Intel Rio Rancho Plant

RIO RANCHO, N.M. (AP) — Intel Corp. said Tuesday that it expects to cut more than 1,000 jobs at its Rio Rancho plant as the company ends production of an older silicon wafer technology. Intel will stop making the 200-millimeter wafers at the plant by the end of August, and affected employees will be offered severance packages or can apply for other jobs within the company, spokesman Jami Grindatto said.

Anyone who works at the Intel Rio Rancho plant knew this was coming. I know a large number of people that have been waiting to for a chance to get out with a severance package. Still, this sucks. One fifth (20%) of the people that work at this plant will be gone wether they like it or not.

The AP article doesn’t mention when Intel expect to have everyone out but this KOB article say they start in August.

A article from the Albuquerque Tribune says:

Larry Waldman, a senior economist with the University of New Mexico’s Bureau of Business and Economic Research, projects the layoffs expected to come in August could cause the loss of another 1,000 jobs in places such as the retail and service sectors. “It’s not going to be just 1,000 jobs when you look at effects on other parts of the economy,” said Waldman, referring to retail and service jobs that might supplement Intel workers. While that may not be the rosiest picture, Waldman said the losses will have only a minor impact on the economies of both the state and Albuquerque metro

Update 5/7/07: From the Trib:

U.S. Sen. Pete Domenici has asked Labor Secretary Elaine Chao to assign staff from her agency’s Dallas office to coordinate job placement programs for the 1,000-plus workers expected to lose their jobs at Intel Corp.’s Rio Rancho plant.