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Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):

Intel to Lay Off 1,000 Managers

  • Summary: Intel will lay off 1,000 managers throughout all levels of management and geography, a move that recognizes the semiconductor giant's workforce has become bloated. Intel has been attempting to improve its profit margins amidst stronger competition from Advanced Micro Devices and slower sales growth in PCs. As of the end of March, Intel had about 103,000 employees; in 2005, the Intel workforce grew fully 17%, with the number of managers growing at a faster pace than the rest of the workforce. This is the first broad reduction of Intel managers in the company's history.
  • Comment on related stocks/ETFs: Intel reports 2Q earnings this Wednesday. William Trent notes that Intel's new high-performance server chip, dubbed Woodcrest, is faster than AMD's new server chip that sent ripples through the industry last month. Chad Brand, meanwhile, is closing out his paired arbitrage trade: long INTC, short AMD.
Source: Intel To Cut 1,000 Managers Throughout the Company (INTC)