Intel on Thursday said it will eliminate 1,000 worldwide management positions by the end of July. According to an IDG News article, the effort is part of an attempt to stave off declining earnings, which are expected to be US$9.3 billion in 2006, compared to $12.1 billion last year.
"This is one of the first actions of the structure and efficiency project we announced in April. It is designed to reduce cost and improve decision making," company spokesman Bill Calder said. He dismissed rumors that Intel plans even more layoffs as "speculation," but did admit that "the efficiency analysis continues."
Mr. Calder also said: "If you go backwards over the past five years, the number of managers has grown faster than the number of employees. That affects both communications and decision making." Intel currently employs 100,000 people worldwide.