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Intel Might Issue Layoffs

An Intel internal email indicates that the company will be making some changes, and possibility layoff a number of employees. The email was obtained by Internet News, and it has the company`s CIO John Johnson addressing the IT staff saying that "(we) must rapidly adjust our programs and headcount to meet our new Plan of Record spending and headcount targets."

Later in the memo, Johnson said: "Our immediate first steps are to stop selected programs completely, scale back other programs, and remove unnecessary overhead across the organization. The identification of these programs will be completed in roughly 30 days. To create a more efficient IT, we must develop a more compact, less hierarchical organizational structure, reduce process and operational overhead, and selectively reduce jobs in some skill areas."

In a briefing with financial analysts last week, Intel CEO Paul Otellini said that a thorough review of all operations at the company had begun with an eye towards cutting as much as $1 billion of the $12 billion in spending that had been planned for 2006. Still, Otellini said it would be "way too simplistic to do a reduction in force." Intel spokesman Chuck Mulloy told Internet News that no final decision on headcount reduction or redeployment in any department has been made yet.