The actions will result in a reduction of 5,000 to 6,000 jobs, Intel said. It ended 2008 with around 84,000 employees.Not all cuts at the affected plants will lead to job losses and some workers will be offered positions at other facilities, it said, adding that the restructuring will take place between now and the end of 2009.
"It's not a surprise given that their first quarter is probably going to be challenging, and they're trying to do what they can to cut costs in places that make sense," said Taunya Sell, an analyst at Ragen Mackenzie, a division of Wells Fargo.Intel said it was not halting production at any of its more advanced factories.
Intel shares rose about 1 percent to $13.40 in after-hours trading, after rising 3.11 percent to close at $13.26 on the Nasdaq stock market.
Last week, Intel said its fourth-quarter revenue fell 23 percent from the year-ago period and profit tumbled 90 percent. It also held back on giving detailed quarterly forecasts, citing economic uncertainty.
Analysts have been wary about Intel's outlook for the year as chip sales slide. PC makers and other technology companies have been trimming inventory and cutting back on purchases.Intel also faces competition from new, cheaper chips made by Advanced Micro Devices Inc (AMD.N).On Tuesday, Intel said it was lowering prices on some of its processors, including price cuts of up to 40 percent on some of its higher-powered, faster quad-core chips.AMD said earlier this month that it expected to post additional restructuring charges for fiscal 2008 and 2009.
(Additional reporting by Robert MacMillan; Editing by Andre Grenon)
Comment: So while the manufacturing plants shrivel away and the hollowing out of Penang's industrial base gathers steam under a dunce of conspirators, the Chief Conspirator is engaged in matters more spiritual (check out the fiasco regarding the Thaipusam route in the Star :22/1/09) and cultural( read about the Chap Goh Meh affair also in today's Star :22/1/09) . Talk about wanking money and pride for personal glory!! and coming up with inane statements like this after earlier promising that there would be minimal disruption to employment in the state. Liar!Liar :Pants on Fire
Revert: I am waiting for them apologists to come to the stupid nerd;s rescue.