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Sunday, January 25, 2009

Intel cuts to affect up to 6,000 workers

Chipmaker to cut production at 2 U.S. plants, shut 3 facilities in Asia.

NEW YORK (CNNMoney.com) -- Chipmaker Intel Corp. announced Wednesday that it will be cutting production at two U.S. silicon wafer facilities and closing three facilities in Asia, affecting between 5,000 and 6,000 workers. (This isn't a great news to my friends who work in Intel)

Intel, in a news release, said some of the workers could be offered positions at other facilities.

"The fact that they're taking action rather quickly to rightsize production" is encouraging, said Doug Freedman, analyst at research firm Broadpoint AmTech.

Intel, like other chipmakers, needs to scale production to a level that matches demand, according to Freedman.

The No. 1 maker of microprocessors said production will be halted at the Fab 20 facility in Hillsboro, Ore., and the D2 facility in Santa Clara, Calif.

Operations are being shut at two facilities in Penang, Malaysia, and a third in Cavite, Philippines. (Are you ready guys?)

The plant shutdowns are slated to occur between now and the end of the year, according to Intel.

The company said the reduction in manufacturing capacity will not affect the production of its new 45-nanometer and 32-nanometer chips.

Last week Intel posted a 90% decline in fourth-quarter earnings, as demand for computer components declined through the last part of 2008. Because of the uncertain economic climate, the company refused to offer any guidance for what the first quarter will bring. (If The No. 1 maker of microprocessors has 90% decline, what about others?)

However, Intel did say that profit margins would perk back up to normal levels by the second half of the year, even though capital spending would be relatively flat, or even recede in 2009.

"When the economy gets a headache, we (the tech industry) get the flu," said Freedman.

Intel is widely viewed as a proxy for the health of the overall PC industry, since its products are a key component for most computer manufacturers.

Shares of Intel (INTC, Fortune 500) rose 1.13% to $13.41 a share in after-hours trading.

(Source: CNN)
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My sister's friend who often comes to our house recently was shocked with a bad news. After few scanning, she had been told that the lump in her body has 90% possibility is cancer based on some symptoms.

As additional to her sorrow, her factory did some great retrenchment and she was involved.

I pray that it is not cancer; she is just 18 years old and still a long way to go.



28 comments:

  1. Western Digital (produk hardisk pc) kat Kuching pun mengalami masalah yang sama. Hampir 10000 org pekerja akan diberhentikan (operator, technician n engineer). Coz Western Digital kat US dah bankrap pun skang...

    Hopefully lah kerajaan negeri Sarawak ada langkah drastik to overcome this problem.

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  2. Hussaini - Kilang di Penang ni tahu saje lah kan berapa banyak. Then bila jadi kes macam ni penganggur jadi terlalu ramai dan kemiskinan akan semakin bertambah. Untuk yang dah bersedia dengan simpanan boleh la mulakan perniagaan or tampung hidup sementara mencari kerja lain tapi bagi yang tidak bersedia, bagaimana?

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  3. gloomy economy forecast looming over the world has taken so many tolls days after days. The world is not immuned to it so as ourselves.

    Hope your friend will get well soon. Ikhtiar dan cari jalan alternatif.

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  4. Drsam - Yes, everybody is tend to stay where they are and erase the business idea they have in mind at the time being.

    I do hope she will get better result soon.

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  5. takutnya....harap2 ia akan pulih balik...tapi faisal..keje elle akan lebih banyak lah!!!!

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  6. Elle - Eh kenapa pula? Elle kan kerja di firm. Terlibat juga ke?

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  7. ye la...i buat kes kebankrapan...so banyak lah kes kebankrapan akan terlibat!!!!mean firm elle akan dapat case la!!!

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  8. Elle - That mean, Elle dapat banyak kes lah? Bonus banyak lah tahun ni! Haha.

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  9. sigh..hope the economy will be in a good condition after june 09

    anyway..pray hard for your sister's friend..

    hope everything will be fine

    always have hope and faith right?

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  10. kesian..taoi nak wat cmna..ni la lumrah yg kita kena hadapi lah kan..

    smoga ur sister's friend tu sntiasa sihat2 je..

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  11. That's bad news! I can see lots of retrenchment happening in the next few months. And sorry about your sis' friend. 18 only have cancer? Hope it's not true!

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  12. i was quite surprise with this news when i read in the paper. but we can anticipate about the situation. the effect of the economic crises will be started in 2009. even though we can get through it in 2008.

    i'm wondering what's going to happen to all the penangites who works in intel. my ex-housemate was just started in intel last august.

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  13. siannyerr rakan adik kamooo.. muder lagik tewww..
    thanx bro singgah2 jenguk2 komen2 blog me yg itewww..

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  14. Inah - I do hope so. Right now, the crisis really scares me and all my plans will be kept till the right moment.

    I surely pray for her and I hope the latest result will be a good one.

    Tun Teja
    - Ya Teja. Semua ni takdir kan. Di samping berusaha kita juga kena akur kepada takdir.

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  15. Foong - Yes, a lot of workers will lost their job at this near future. I hope they already have some saving for the rainy days.

    Yes, to detect disease like this at the young age really a broken heart moment. She surely has lots in her mind but then will be erased one by one. It gives me more sorrow after studying her life being adopted by non-biological parent. Trust me they ain't a good one.

    Myadlan - Your housemate needs to be prepared. He needs his saving to survive while get himself a new resume for a new job. There is nothing promising at this moment rather than government sector.

    I thought 2009 will be a good year to start investing since one of CIMB unit trust staff told me so. But I was right not to follow what he told me after few consideration.

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  16. En_me - Ye En_me. Sangat muda. Diharap result terbaru tak seperti yang dijangkakan. Amin...

    No problem. Thanks for visiting me too :)

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  17. betul..tapi xsemestinya menjadi penamat kan..mungkin rezeki di tempat yg lain lak...

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  18. Teja - Betul tu. Tapi susah juga bagi yang dah berumur dan berkeluarga. Kebanyakan company nak yang fresh graduate untuk salary yang rendah dan yang muda supaya boleh bekerja lama di company tersebut.

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  19. hurm...yeah 2009 ni kan kemelesetan ekonomi...mmg kena beware sket la..

    hope everything fine 2 ur sis frenz..

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  20. Wahidah - Yeps. Memang kena berhati-hati. Kena save betul-betul instead of buat business or boros berbelanja.

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  21. I'm sorry to hear about your sister's friend. It's definitely a hard blow for her and with this retrenchment issue too. Now we just gotta have faith in ourselves and in God.

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  22. Josette - Yes, faith is what we need at this very moment.

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  23. This is what my sister said. Intel has left the Philippines and they're not ready! Sad, huh?

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  24. Aisha - Yes, its pretty sad Aisha. Especially those who earn so little for living :(

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  25. The economic downturn just started recently.
    Hope the upturn can coming soon.

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  26. Coolingstar - I hope so too and I heard it will be alright in June!

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  27. mmm...husband kniedaz kat intel pun baru attend urgent meeting pasal benda ni..diorg akan tutup dua plant by the end of this year kat penang..half of the staf will be transfered to kulim plant but god knows whose going to get transfered and whose not..nak tak nak kena cari keje len la....

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  28. kniedaz - haiz kesian kan. tu pasal kita sentiasa kena ada saving for the rainy days. kalau terkejut tergempar macam ni, kan susah :( bila le ekonomi nak ok balik...

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