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by Mike Zazaian September 5, 2006 - 7:48pm, 1 Comment

Intel Cuts 10,000 Jobs

Intel plans to cut 10,500 jobs out of their Marketing and IT departments, adjusting for a future with a smaller share of the processor market.

Intel hopes to save upwards of $2 billion with the cuts, which include the firing of 1000 managers and sales of a number of the companies assets, including its communications unit and various telecommunications assets. By 2008 the company intends to cut out an additional $1 billion of dead weight.

Intel’s unfavorable place in the chip market is likely the result of the booming success of competitor Advanced Micro Device’s line of Athlon 64, 64 FX, and 64 X2 dual core processors over the past few years. Perfomance tests from all manners of Internet hardware pundits placed Athlon 64’s price/performance ratio well above any of the chips Intel had to offer until the recent release of the Core 2 Duo. AMD currently has claim to 26% of the server market, a figure which it hopes to increase to 40% within the decade.

“These actions, while difficult, are essential to Intel becoming a more agile and efficient company, not just for this year or the next, but for years to come,” said Intel CEO Paul Otellini in a recent press release. Surely Intel isn’t the insurmountable Juggernaut that it once was, especially after mediocre desktop showings from its Intel D line in recent years, but the technologies of the now-dominant Core 2 Duo lineup bode well for Intel in the near future.