Intel ready to start lay-offs in India
This would be part of the company's global cost cutting exercise to cut $1 billion in expenses.
By Sujit John and R Raghavendra, TNN |
BANGALORE: After Apple, it could now be Intel. No, Intel will not exit India, as Apple did recently, but the chip giant looks certain to lay off a good number of people from its Indian operations over the next few months. This would be part of the company's global cost cutting and layoff exercise designed to cut $1 billion out of its forecasted expenses.
The biggest impact in India is expected to be felt by the information and software technology group here. The division, which manages Intel's internal computing resources and provides asset management requirements, is said to be over 500 people strong in India, and employees believe that up to 50 per cent of that could be asked to go. It is also expected that some 10 per cent of people in many other divisions would face a similar fate. Intel has about 3,000 people in India.
Inside Intel, employees are uneasy. "We are aware that the screws will be tightened (read lay offs) in the coming days. And there are huge apprehensions about how the organisation will execute this task and the extent it would impact India ," said an employee in Bangalore.
Employees say an internal mail from Intel India president Frank Jones stated that the organisation will complete the reorganisation evaluation by June 29 and inform employees about the specifics of the actions to be taken.
When contacted, Intel did not deny the possibility of layoffs in India. A company spokesperson said, "Intel is, for the first time in 20 years, conducting an in-depth review of its focus and structure. This effort is not meant to replace Intel's relentless pursuit of innovation, technology and great products. Rather, it is meant to add to those skills an equivalent focus on efficiency. We do expect to have fewer employees than we do now as a result of attrition , redeployment and changes to Intel's business."
Intel chief executive Paul Otellini had recently said that "every piece" of the company will be examined for efficiency and productivity. Some foreign media organisations have recently said that Intel may layoff about 16,000 people globally.
Intel's cost-cutting follows a 38% drop in profit in its January-March , 2006, quarter , compared with a year earlier, and a 5% fall in revenue.
The biggest impact in India is expected to be felt by the information and software technology group here. The division, which manages Intel's internal computing resources and provides asset management requirements, is said to be over 500 people strong in India, and employees believe that up to 50 per cent of that could be asked to go. It is also expected that some 10 per cent of people in many other divisions would face a similar fate. Intel has about 3,000 people in India.
Inside Intel, employees are uneasy. "We are aware that the screws will be tightened (read lay offs) in the coming days. And there are huge apprehensions about how the organisation will execute this task and the extent it would impact India ," said an employee in Bangalore.
Employees say an internal mail from Intel India president Frank Jones stated that the organisation will complete the reorganisation evaluation by June 29 and inform employees about the specifics of the actions to be taken.
When contacted, Intel did not deny the possibility of layoffs in India. A company spokesperson said, "Intel is, for the first time in 20 years, conducting an in-depth review of its focus and structure. This effort is not meant to replace Intel's relentless pursuit of innovation, technology and great products. Rather, it is meant to add to those skills an equivalent focus on efficiency. We do expect to have fewer employees than we do now as a result of attrition , redeployment and changes to Intel's business."
Intel chief executive Paul Otellini had recently said that "every piece" of the company will be examined for efficiency and productivity. Some foreign media organisations have recently said that Intel may layoff about 16,000 people globally.
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Intel's cost-cutting follows a 38% drop in profit in its January-March , 2006, quarter , compared with a year earlier, and a 5% fall in revenue.
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