Intel Cutting Over 10,000 Jobs!

Intel Corp. said it is cutting 10,500 jobs, or about 10 percent of its work force, as part of a plan by the world's biggest microchip maker to become more competitive.

The cuts, along with other cost-cutting measures stemming from a three-month top-to-bottom review of operations, would help the technology giant save $1 billion this year, $2 billion next year, and $3 billion in 2008, Intel said.

Intel said it would take a charge of $200 million in severance costs. Its shares fell 25 cents, or 1.3 percent, to $19.74 in extended trading following the announcement.

Analysts have said Intel needs drastic action to reverse sliding profits and halt steady market share gains by rival Advanced Micro Devices Inc..

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