Intel will cut jobs to maintain lead over AMD
Just saw on CNN that Intel will cut more jobs from it’s 100,000 worldwide workforce. This is on top of the previous job cuts of about 1,000 managers lately. Reports says the cuts could be between 10,000 to 20,000 employees.
This seems to be Intel’s logical step to maintain it’s lead over growing competitor Advance Micro Devices (AMD). The Opteron is held to be a much better processor in the server line and companies such as Dell are ordering AMD chips in for their desktop PCs.
The job cuts might seem a drastic move for Intel just so it could regain it’s market share but there’s no other way. Intel has already dropped it cpu pricing and could slash some more anytime soon. Is laying off a ton of people gonna help them? Maybe. The cashflow might look better right after but I don’t see it helping them in the long run. Still, that does not change the fact that AMD is becoming a better processor chipmaker.
It just boils down to two things — which chip is faster and cheaper at the same time. Intel? AMD? Let the market decide.