The computer and chip makers have had their problems in recent years. Intel, in an effort to become more efficient, is cutting management jobs. The competition is stiff and fewer personal computers are being sold. According to Chuck Mulloy, Intel's spokesman, this is an action in a continuing effort of their broad structuring announced in the earlier part of the year. Analysts are suggesting more cuts as Intel's executives look closely at operations. Advanced Micro Devices Inc., a smaller rival company, is challenging the supplying of microprocessors, which is Intel's core business. Since the demand for PCs is slowing and AMD is taking away business, Intel is focusing on cost reducing and eliminating inefficiencies. Paul Otelli, CEO of Intel, announced the plan to sell a division that makes chips for cell phones and other devices. This will of course, increase cash flow while decreasing expenses. Since this division was losing money and not able to effectively challenge the entrenched competitors, it is at the top of the elimination list. Intel grew rapidly in the last five years. Managers were hired at a faster pace than the overall increase in employees. So a reduction in this area should remove layers and improve communications. Who knew that the environment in which computer technology evolves would change this much in a short period of time. |
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