Intel, has revealed plans to restructure its manufacturing operations around the world, a move that will cost between 5 000 and 6 000 employees to lose their jobs worldwide.
The company said the move, which is with immediate effect, was in line with prevailing manufacturing conditions.
“Intel Corporation discloses plans to restructure some of its manufacturing operations and align its manufacturing capacity to current market conditions.The company will consolidate and streamline some older capacity without impacting the deployment of new, leading-edge 45-nanometer and 32-nanometer manufacturing capacity,” the company statement made available to ITNewsAfrica read.
Intel said it planned to close two existing assembly test facilities in Malaysia and Philippines and will halt production at Fab 20, an older 200mm wafer fabrication facility in Oregon as well as streamline production operations in California.
“The actions at the four sites, when combined with associated support functions, are expected to affect between 5 000 and 6 000 employees worldwide. However, not all employees will leave Intel; some may be offered positions at other facilities. The actions will take place between now and the end of 2009.”
The company last week released its results for the fourth quarter of 2008 where its revenue was 19 percent down from the corresponding period in 2007 to US$ 8,2 billion.
“Intel has weathered difficult times in the past, and we know what needs to be done to drive our success forward. Our new technologies and new products will help us ignite market growth and thrive when the economy recovers,” Intel said in its report–ITNewsAfrica.
