New York, Jan 22: Global recession has hit the IT giant, Intel Corp and the Company has decided to cut production cost at two US silicon wafer facilities. The Company will also be closing down three facilities in Asia, affecting between 5,000 and 6,000 workers.
Intel press release said, "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 fact that they're taking action rather quickly to rightsize production" is encouraging, said Doug Freedman, analyst at research firm Broadpoint AmTech.
Operations are being shut at two facilities in Penang, Malaysia, and a third in Cavite, Philippines.
Last week Intel posted a 90 per cent decline in fourth-quarter earnings, as demand for computer components declined through the last part of 2008. Because of the uncertain economic climate, the company refused to offer any guidance for what the first quarter will bring.
OneIndia News (With inputs from Agencies)