By Grace Wong, CNNMoney.com staff writer
September 5 2006: 6:02 PM EDT
NEW YORK (CNNMoney.com) — Intel Corp. raised its job cut target to 10,500 jobs, or about 10 percent of its workforce, on Tuesday as it aims to fight off fierce competition from rival AMD.
Intel, the world’s largest chipmaker, said it would eliminate 7,500 jobs by the end of this year and another 3,000 jobs by the middle of 2007.
Intel shares (blue) have tumbled about 20 percent in the last year, while shares of AMD (yellow) have soared about 24 percent in the same period.
The reductions include some previously announced cuts, including the layoffs of 1,000 managers made in July and reductions related to the sale of its communications and media businesses.
Shares of Intel (Charts) fell about 1 percent in extended trade on the widely expected move, which was announced after market close.
Investors were looking to see how aggressive Intel would be with the cuts, Suji de Silva, an analyst with Cathay Financial, said. It was a big cut, but was viewed as more moderate than aggressive, he said.
This year’s cuts will impact management, marketing and IT divisions, while next year’s reductions will be more broad-based.
Intel spokesman Chuck Mulloy said the company has not yet decided on the geographic breakdown of the cuts.
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