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Intel Bloodletting Redux: Does It Matter?

Intel will release another 10,500 employees into the wild as it attempts to reinvent itself. But the bloodletting in itself isn’t going to change the fundamental problems Intel faces: an inventory glut of processors that haven’t moved, stiff competition from AMD, and its new sidelines (like the poorly-branded Viiv consumer chipset line) have yet to really do anything for Intel’s bottom line.

And it’s not really clear what the impact of these cuts on the channel will be. About 5,000 of the people affected by the announcement are already gone, and it’s not clear where the other 5,500 are coming from. Its sale of its communications processors to Marvell doesn’t really directly affect resellers, and an earlier layoff of 1,000 managers in an effort to address “slow and inefficient decision-making” (announced in July) is still working itself out.

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