It probably hasn't been the most relaxing Labor Day weekend for certain Intel Corp. employees. Intel is expected to announce a restructuring program that could mean as many as 10,000 layoffs. "They
may also say something about writing down excess inventory and dealing with unprofitable businesses. That is what Wall Street is expecting," says Ashok Kumar, an analyst at the investment firm Raymond
James. It appears that Intel wants to cut costs in light of the rise of Advanced Micro Devices, which is steadily eating away at Intel's marketing share in its mainstay semiconductor business. The
firing of so many employees comes at the end of a hiring binge, in which Intel added some 23,000 employees in less than three years. However, sales started dipping earlier this year, and then began
accelerating, causing the company to rethink its bulky structure. An Intel spokesman refused to comment on the layoffs and whether the company will make an announcement today. He said Intel will tell
employees and the media the results of an "efficiency analysis" by the end of September. According to Kumar's analysis, if Intel cuts 10,000 employees, the company could save $1.5 billion in annual
operating costs. Other analysts aren't so sure Intel will go through with the layoffs. Tim Bajarin, an analyst with Creative Strategies, says layoffs would not surprise him, but but "mass layoffs
aren't the tradition at Intel. They are more likely to be strategic in some way, related to a particular business." Intel has already announced plans to lay off 2,000 managers. Should more cuts
happen, the analysts say the most likely department to see red is--you guessed it--marketing.
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