Global economic crisis hits Intel


Intel Corp. has declared that it would close manufacturing plants in Malaysia and the Philippines. The cost cutting measures would also involve bringing down the operations in the US.

All the three units are the "assembly test" facilities of the company. But a major cost cutting measure involves sacking 6000 employees of the company.

The decision to shut three units and cut on workforce succeeds the company's decision to slash prices on a number of processors. A week earlier the company had also reported a decline in its fourth quarter revenue due to the economic crisis.

Chip makers have to ensure that their factories are running at full throttle and paying back for the expenditure incurred on them. But the units that are just consuming the resources i. e. underutilized factories are cutting into Intel's margins. The move had to be initiated to strike a balance. Intel also clarified that the cuts wouldn't affect investment in factories specializing in 45-nanometer or 32-nanometer chips.

"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. (Supreet contributed to this report)

Latest News

Clean Energy Research to get Historic Investment during the United Nations
Investors Keenly Wait for OPEC Meeting; Oil Prices Move Up a Little
Amazon Testing Drones in Multiple International Locations
NextEra Agrees to Sell Two Texas Power Plants to Luminant
China’s Yuan Could be Named a Reserve Currency by the IMF
Rupert Murdoch Tweets Tribune Probably Selling Los Angeles Times
Black Friday Shopping “Uninspiring” in Brick and Mortar Stores; Shopping Trends
U.S. Crude Drops Further Due to Surplus Supply
CVC and CPPIB Outbid Others for a Possible Deal to Buy Petco for $4.7 Billion
US Government All Set to Introduce a New Law for Americans “Seriously Delinquent
Reportedly Pfizer Plans to Acquire Allergan in a Deal of $150 Billion or More
In October Most States Experienced a Drop in Unemployment Rate