Catherwood LibraryILR School

Intel, the world's largest computer chip-maker, is to cut 10,500 jobs - or 10 percent of its total staff, by mid 2007. The move follows a fall in Intel's quarterly profits of 56 percent and the launching of an efficiency review. Intel's earnings have been suffering after the firm cut chip prices to fend off increased competition from rival Advanced Micro Devices (AMD). The cuts, focusing on marketing, management and IT employees, are tipped to save the firm $3 billion by 2008. Meanwhile, the severance packages are expected to cost the firm about $200 million.