iTWire - AMD gains force Intel to make cuts

AMD gains force Intel to make cuts

by Stan Beer
Friday, 28 April 2006
Intel has admitted that its poor performance in 2005, a year in rival chip maker AMD made significant gains and launched an antitrust legal suit against the market leader, will lead to downsizing the company. At an analysts meeting yesterday, Intel CEO Paul Otellini reiterated that the company will be "leaner and more agile" as a result of the planned restructuring announced a week earlier. Otellini indicated that the restructure will be more than just cutting its workforce but also unprofitable businesses. A major part of the planned restructure will involve dramatic spending cuts in the manufacturing area, which could mean plant closures in non-profitable businesses, which have yet to be identified. Intel launched its new vPro business platform earlier this week, which it hopes will revitalise its flagging performance in the PC space, where AMD is making gains. Paul Otellini has stressed that branding, such as vPro, Centrino and Viiv, is the way forward for the company. In June 2005, rival AMD filed an antitrust suit against Intel in the US federal district court of Delaware alleging Intel had unlawfully maintained its monopoly in the x86 microprocessor market by coercing customers around the world not to deal with AMD.{moscomment} Please enable JavaScript in your browser to post your comment! Tags See All Tags Add New Tag... Please Enter New Tags Separated By Comma's Or Close Powered By Joomla Tags