Intel wants to cut costs
Intel wants to drastically reduce costs in the current fiscal year because of the poor development on the PC market. The company announced this to its employees. New hires in the personnel area should therefore be reduced to a minimum.
Since relatively more employees leave their jobs than new ones there is a relative reduction in the number of employees. As a further measure, the salaries of upper management are to be frozen until October and only a relatively small salary adjustment is to take place for the other employees. If the situation should have improved by October, Intel then wants to compensate for the current cuts. The expenses for travel expenses and overtime are to be reduced by a total of 30 percent. The budget for research and development and capital expenditures should not be changed, since these areas are intended to secure future markets. In addition to Intel, other companies such as Sun, HP and Dell have issued such notices to their employees.