Intel to cut around 10% of its global workforce

Microprocessor Company Intel has said that they are planning to cut as many as 10,500 jobs. This comes to around 10% of their entire workforce.

The aim is to become a more efficient company to face the growing challenge from smaller rivals AMD, which are increasingly becoming a threat to their domination in the processor market.

These job cuts alone would save the company around a billion dollar a year this year. The savings increases to $2 billion next year, and $3 billion in 2008.

Market analysts have already been saying that Intel has to take some drastic steps to get back the edge they had against AMD and other rivals. Chief Executive Paul Otellini said in a statement on this announcement: “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.”

They would however be taking a charge of $200 million in severance costs.

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