(Associated Press via NewsEdge) Intel is cutting 1,000 management jobs as the chipmaker tries to become more efficient amid stiff competition and weaker demand for personal computers.
The reduction, which would take several days to be carried out, was the latest action in a broad restructuring announced earlier this year, Intel spokesman Chuck Mulloy said.
Analysts expect further job cuts as executives continue to scrutinize operations.
Mulloy declined to say how much money would be saved by the latest cuts or whether they would result in a charge against earnings. The company would provide more details when it reports second-quarter results, he said.
ThinkEquity Analyst Eric Ross, who recently released a report predicting Intel would reduce its workforce by more than 10,000 employees, said Intel was scrambling to slash costs as smaller rival Advanced Micro Devices encroached on its highly lucrative core business of supplying the microprocessors that acted as the brains of computers.
"They need to cut costs and they need to do it fast," he said in an interview.
Ross, who estimated Intel had about 100,000 employees following the sale of one of its business units last month, predicted executives would announce plans to pare another 9,000 employees in the next six months.
In April, Intel reported a 38% drop in first-quarter profit as demand slackened for PCs and microprocessors from AMD continued to steal market share.
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