Intel Eyes New Business Plan.

Publication: eWeek

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COPYRIGHT 2006 Ziff Davis Media Inc.

Mea culpa, Intel. Executives at the chip maker, in taking responsibility for the company's poor performance of late, are making some changes.

Intel CEO Paul Otellini, speaking at the company's annual financial analysts meeting in New York on April 27, hinted that the chip maker may reduce its 100,000-employee work force and jettison underperforming businesses between now and roughly the end of 2007, in addition to speeding up product launches, as it seeks to become more nimble.

The chip maker, which suffered a difficult 2005, during which it lost market share to its rival Advanced Micro Devices, is responding in several ways.

First, it has begun a broad self-evaluation. The plan, announced on April 19 but begun before that, will look at all of its businesses and ultimately lead to the restructuring and work force changes hinted at by Otellini.

The actions will come in addition to efforts to refresh its product line more often--in the short term, it will roll out a new crop of chips as quickly as...

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