14 DAY TRIAL // Following reports that the company will be required to announce its first loss in 21-years of profitability, Intel announced yesterday that it planned to start a restructuring plan that would include some of its manufacturing operations, in an effort to counteract the effects of the global low economy.
The company is expected to close some of its older fabs, while also consolidating some of its newer facilities, thus focusing on the development of its leading-edge 45nm and 32nm manufacturing technologies. As part of the restructuring plan, the jobs of approximately 6,000 Intel employees are expected to be affected, although the company hasn't provided a specific number of jobs cuts that are planned.
According to yesterday's press release, Santa Clara, California-based Intel is planning to close two of its existing assembly test facilities in Penang, Malaysia and one in Cavite Philippines. In addition, the plan includes a halt of production at Fab 20 and will end wafer production operations at the D2 facility in Santa Clara, California. The company's Fab 20, in Hillsboro, Ore was meant to deal with an older 200mm wafer production. According to the world's leading manufacturer of computer processors, the restructuring plan is expected to be carried out until the end of 2009.
The chip maker hasn't provided any specific numbers detailing how many of its employees are expected to lose their jobs, but it has mentioned that the restructuring plans will affect the jobs of between 5000 and 6000 employees worldwide. Not all of those still working at Intel are to leave the company, some will be offered positions in the company's other facilities, however, exact numbers are yet to become available.
Intel's shares rose 18 cents to $13.44 after an extended trading on Wednesday, after the company's restructuring plans have been revealed. During the normal trading session, Intel's stock rose 40 cents, 3.1 percent, to $13.26.