Intel Advertises Jobs While Planning Massive Cuts

The company posted job openings as recently as Friday, while employees, investors, analysts and competitors waited to hear Intel President and Chief Executive Officer Paul Otellini's plans for massive restructuring.

The company's Web site featured 22 U.S. positions posted in the last two weeks. It contained another 19 in Israel and six in Malaysia, where media reported that some employees had received offers for voluntary separation.

The job openings remained Tuesday, as Otellini presented the findings of a three-month review during a worldwide internal Web cast and revealed plans to save $2 billion in 2007.

Several organizations have recognized Intel over the past year as one of the best U.S. employers. Rankings resulted from several factors, including job security.

Intel announced at the end of the second quarter that its profits and market share had dropped. The company announced that it would probably miss its sales target for 2006. Since then, the company reportedly cut about 1,000 jobs in Malaysia.

As investors, employees and analysts awaited news from Intel Tuesday, the company's job bank remained full. Several of the openings in Israel and the United States indicated the company was looking for students, interns and recent graduates. However, there were several postings for experienced engineers for hardware, software and mechanics, manufacturing and testing and development.

Intel spokesperson Chuck Mulloy did not return phone messages Tuesday, but the company issued a news release saying it planned to reduce its workforce mainly through attrition and previously announced sales. The statement indicated that cuts would occur in management, marketing and information technology in 2006.

"In 2007, the reductions will be more broadly based, as Intel improves labor efficiency in manufacturing, improves equipment utilization, eliminates organizational redundancies and improves product design methods and processes," the news release stated.

Intel announced that the labor force would stand at 95,000 by the middle of 2007, down 10,500 from the end of the second quarter in 2006.

"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," Otellini said through a prepared statement.

Intel said that it planned to save $3 billion in 2008 from job cuts and another $1 billion from other changes, including more efficient manufacturing, merchandising expenses, capital, materials and operating expenses.

Intel estimated that severance costs, estimated at $200 million, would offset some of the savings.

The company is due to release its third-quarter financial statement Oct. 17, and does not plan to update its business outlook before then.

Intel is one of several technology companies that have announced workforce reductions recently. Radio Shack laid off 400 employees by sending e-mails.