Intel India downsizes managerial jobs

BANGALORE: Intel, the world’s largest chip maker, has announced that it would cut 1,000 jobs worldwide at the managerial level. This cut will be felt at its India operations too, with the affected employees starting to receive e-mails to this effect.

They will be sent notices starting July 14 till July 17, and the last working day for them would be July 28. It is unclear how many Intel managers in India are being terminated at this moment.

The axed employees will receive three months of separation pay and the compensation for the non-US employees will be in accordance with the local laws.

The impact of this cut will be at the level of senior manager, managers (operations) and first line managers. An internal e-mail sent by Intel President & CEO Paul Otellini said, “We have done extremely well in the PC era, but we have to adjust to where our industry is going.”

On specifically targeting managers, the CEO said this level has increased bureaucracy and slowed down the decision-making process.

In India, it’s not known whether the affected managers are from the R&D activity or the sales and marketing functions but this cut is expected to be across the board.

When contacted by ET, Intel India would only say, “We are not providing further details about the affected managers, either by function or location.”

This planned cut of 1,000 jobs at the managerial level will constitute about one per cent of its total 1,00,000 employees. Intel, the $38.8 billion chip giant has been undertaking a review of its operations following the soft demand for PCs and increased competition from its rival — AMD.