Intel layoffs

Marketplace Staff Sep 6, 2006

TEXT OF STORY

MARK AUSTIN THOMAS: Earlier we told you about the head of Ford Motors stepping down. He’s just one person. Imagine a company loosing 10,000 employees. That’s what’s happening at computer processing chip maker Intel. Yesterday it announced pink slips would be handed out to 10 percent of its workforce. One of the areas most affected by the cuts is the marketing department. Tech analyst Rob Enderle wonders about the wisdom of that decision.

ROB ENDERLE: I’m not sure how wise that is long term, primarily because marketing has been one of Intel’s advantages in previous fights.

Enderle also thinks the layoffs could backfire on Intel.

ENDERLE: I’m not a big fan of layoffs and large layoffs tend to have a lagging impact of making the company increasingly less competitive as the organization tries to recover from the lost resources of the people that have left.

Enderle thinks it would be better for Intel to focus on their lack of competitiveness against rival Advanced Micro Devices.

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