Intel to shut sites and cut up to 6,000 jobs

[epoyking]

---

NEW YORK (Reuters) – Intel Corp (INTC.O) said on Wednesday it would close manufacturing plants in Malaysia and the Philippines, as well as its only remaining factory in Silicon Valley, cutting as many as 6,000 jobs.

The announcement comes a day after the world's largest maker of microprocessors used in personal computers slashed prices on a number of its chips and a week after it reported a decline in fourth-quarter revenue.

Intel said it would close two assembly test facilities in Penang, Malaysia, and one in Cavite, Philippines.

It will also halt production at a wafer fabrication facility in Hillsboro, Oregon, as well as its Santa Clara, California plant -- a factory connected to its headquarters and the only one left in Silicon Valley.

The actions will result in a reduction of 5,000 to 6,000 jobs, Intel said. It ended 2008 with around 84,000 employees.

Not all cuts at the affected plants will lead to job losses and some workers will be offered positions at other facilities, it said, adding that the restructuring will take place between now and the end of 2009.

"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.

Intel said it was not halting production at any of its more advanced factories.

Intel shares rose about 1 percent to $13.40 in after-hours trading, after rising 3.11 percent to close at $13.26 on the Nasdaq stock market.

Last week, Intel said its fourth-quarter revenue fell 23 percent from the year-ago period and profit tumbled 90 percent. It also held back on giving detailed quarterly forecasts, citing economic uncertainty.

Analysts have been wary about Intel's outlook for the year as chip sales slide. PC makers and other technology companies have been trimming inventory and cutting back on purchases.

Intel also faces competition from new, cheaper chips made by Advanced Micro Devices Inc (AMD.N).

On Tuesday, Intel said it was lowering prices on some of its processors, including price cuts of up to 40 percent on some of its higher-powered, faster quad-core chips.

AMD said earlier this month that it expected to post additional restructuring charges for fiscal 2008 and 2009


****

luoya pud apil man wagtangan trabaho pinoy... lugi na intel?

[samsungster]

kaluoy sa mga empleyado!! hay!!

[Eireann]

sad news to intel staffs. this is the result of the economic downturn.

[ninzska21]

News Pud Intel sa pinas gi close.

tanawa sa TV Patrol!

[c_cebrecus]

News Pud Intel sa pinas gi close.

tanawa sa TV Patrol!

naa na sa 1st sentence sa original post bro..

[COMCAM]

naa diha nag work akong ka batch, dako na ra ba to cya sweldo kai dako cya position

[elvishtattoo]

sadly the same thing will happen to other semiconductor companies.
ako brother-in-law naa nag work sa Fairchild. mass lay-off sad ilang gikahadlokan.

[Poor_Prince23]

cost cutting and downsizing ni tungod sa economic meltdown.
Pinaka ffected ang production/manufacturing..... tsk. Good luck sa ilaha

[d`monyita]

this is inevitable. what with the economy karon....hahayyy.

[dexlimp]

resulta sad ni sa ilang dako nga expense pg research and development nila to produce high performance chips, advance ra kau cla..la cla nakig dungan sa panahon, la pa gani kau programs nga mka abuse sa power sa quad core..cyempre mo price clag mahal sa mga new chips nla bt ang tawo ga tinihik tungod kay down ang economy..imagine kusog unta ang sales sa mga core 2 duo and dual cores chips but ila g stop ang production sa ubang model to give way sa ilang new chips..ang uban bag-o pa kapalit ug core2duo and dual cores, so d jud cla ka expect nga mahalin dyon ilang new advance chips..price drops are also killing them, cyempre dako pa clag invesment pg research ug pg manufacture ana, la pa cla kabawi but la clay choice, mahal man..d ka afford tanan..