As the global financial downturn continues, major companies in the IT industry are expected to register revenues lower than estimated, thus determining some major cost reduction plans, which could also include major layoffs. After recently lowering its fourth quarter estimations, Sunnyvale, California-based chip maker AMD is expected to set forth a number of cost reduction measures, including the layoff of some of its personnel. In addition, Intel is also expected to lower its Q4 predictions and to come up with several cost-reduction measures as well, in an attempt to diminish the effects of the financial slump.
Despite the fact that, this year, Intel launched its highly successful Atom processor, which helped it maintain a steady growth rate during the last quarter, the company is still expected to cut approximately 6 to 7 percent of its total headcount, in an attempt to salvage Q4 2008 earnings, thus saving as much as $1 billion annually. According to a recent article on EE Times, the Santa Clara, California-based chip maker could soon announce a lower revenue outlook, as opposed to the company's November 12 revision.
Additional measures that the Santa Clara chip maker is expected to take include lower bonus payments, a fact that could be influenced by the profitability numbers. These measures are believed to be put in place by sometime in late 2009, which is when the global economy is expected to slightly improve.
Current market expectations also include the number two player in the processor market, AMD, which has recently lowered its previsions regarding the revenue for the fourth quarter of this year. This is the reason why Intel's long-time archrival is also said to be considering reducing the number of its employees, as part of a series of cost reduction measures.
“We do think that Intel's product roadmap is much stronger than AMD's, possibly allowing it to outperform its competitor,” Craig Berger, an analyst for FBR Capital Markets, said, as cited by EE Times.
Despite the fact that, this year, Intel launched its highly successful Atom processor, which helped it maintain a steady growth rate during the last quarter, the company is still expected to cut approximately 6 to 7 percent of its total headcount, in an attempt to salvage Q4 2008 earnings, thus saving as much as $1 billion annually. According to a recent article on EE Times, the Santa Clara, California-based chip maker could soon announce a lower revenue outlook, as opposed to the company's November 12 revision.
Additional measures that the Santa Clara chip maker is expected to take include lower bonus payments, a fact that could be influenced by the profitability numbers. These measures are believed to be put in place by sometime in late 2009, which is when the global economy is expected to slightly improve.
Current market expectations also include the number two player in the processor market, AMD, which has recently lowered its previsions regarding the revenue for the fourth quarter of this year. This is the reason why Intel's long-time archrival is also said to be considering reducing the number of its employees, as part of a series of cost reduction measures.
“We do think that Intel's product roadmap is much stronger than AMD's, possibly allowing it to outperform its competitor,” Craig Berger, an analyst for FBR Capital Markets, said, as cited by EE Times.
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