...from:
http://news.zdnet.com/2100-9584_22-6065708.html?tag=nl.e540
Intel to get widespread restructuring By Candace Lombardi, CNET News.com Published on ZDNet News: April 27, 2006, 8:11 AM PT
CEO Paul Otellini said Thursday that Intel will undergo a complete restructuring. "We are taking a tight look at spending and structure," Otellini said at the chipmaker's shareholder meeting. "We are going to restructure, resize and repurpose Intel to adjust to the business realities of today and tomorrow." There was no mention of layoffs.
[...]
Three new chips, one for each of the Core market segments, will be part of the rollout: Woodcrest for servers in June, Conroe for desktops in July, and Merom for notebooks in August. Because Intel sees the server market as its weakest link, Woodcrest will be launched first, Otellini said. The company is also releasing Broadwater, a new desktop chipset, in an effort to attack a bottleneck of chipset inventory.
"Broadwater will be the fastest chipset ramp-up in the company history," Otellini said. Intel's expenses are out of line with its revenue and profit, compared with those of its competitors, TechKnowledge Strategies analyst Mike Feibus said.
"Intel is coming off a time when nobody got fired for buying Intel. Their hardware sold at a premium," Feibus said. "We've been watching prices drop like falling rain over the past two years. But the company has a cost structure like the good old days." Feibus said Otellini is making the right move by making cuts now rather than postponing them until problems worsen. "You've got to give Otellini credit for taking the bull by the horns and understanding the environment today," Feibus said. Feibus expected job cuts across the board at Intel, saying design, marketing and other teams all are disproportionately large compared with those of competitors.
More info on: Intel's upcoming Core™ microarchitecture: http://www.intel.com/ technology/architecture/coremicro/