The Intel Job Cuts: Not Enough

Intel has out its press release announcing 10,500 job cuts, and the focus is broad, not business-unit specific:

Most job reductions this year will occur in management, marketing
and information technology functions, reductions related to the
previously announced sale of businesses, and attrition. In 2007, the
reductions will be more broadly based as Intel improves labor
efficiency in manufacturing, improves equipment utilization,
eliminates organizational redundancies, and improves product design
methods and processes.

Here is the trouble: The 10,500 cuts doesn’t even reverse all of Intel’s hiring since 2003. According to Bloomberg, the company added 20,000 positions over the period. Put differently, Intel has a lot further to go if it really wants its staffing to match its market.