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Otellini Memo: Intel Upper Management Layoffs Address 'Slow And Inefficient Decision Making'

Intel's planned layoff of 1,000 high-level managers worldwide is part of its ongoing effort to become more efficient in a changing market, according to a memo from Intel President and CEO Paul Otellini, viewed by CRN Thursday.

An Intel spokesman confirmed that the chip maker had informed employees earlier today that it will be terminating 1,000 "senior and first-line" managers worldwide. The layoffs are part of an ongoing effort on Intel's part to improve efficiency within its organization, the spokesman said.

Otellini, at an April analyst conference in New York, said Intel was planning changes, including a $1 billion cut in planned spending for 2006 and a top-to-bottom review of the Santa Clara, Calif., company's entire corporate structure. "No stone will be unturned," Otellini said at the time.

In the memo to Intel employees viewed by CRN, Otellini said the layoffs are necessary because Intel needs to operate more nimbly.

"This step is important because it addresses a key problem we've found in our efficiency analysis -- slow and ineffective decision-making, resulting, in part, from too many management layers," he said.

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