Intel is to close five manufacturing plants, in a move which could affect up
to 6,000 employees.
The announcement comes just two weeks after Intel claimed that it was
weathering the economic storm, and would not need to make any of its staff
redundant.
Two assembly test facilities in Penang, Malaysia are to be shut down, along
with another in Cavite in The Philippines.
Two silicon wafer fabrication plants in the US will halt production,
including Fab 20, a 200mm wafer facility in Hillsboro, Oregon, and the D2 plant
next to Intel's headquarters in Santa Clara, California.
Intel said that not all of the 5,000 to 6,000 employees affected by the
closures will be made redundant, and that some may be transferred to other
facilities.
However, sources close to Intel estimate that between six and seven per cent
of the chip giant's 84,000-strong workforce face losing their jobs between now
and the end of 2009.
Yesterday, Intel employees reportedly received a memo from chief executive
Paul Otellini, saying that the firm might report its first loss this quarter,
after 21 years of profitability.
Intel said that it will now work towards consolidating and streamlining
elements of its older manufacturing capabilities, while pushing ahead with its
45nm production and plans for 32nm manufacturing capacity in the fourth quarter
of 2009.
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