Intel layoffs to number 5-6,000

Malaysia - Intel Corp, the world's largest computer chip maker, has announced plans to close facilities in Malaysia, the Philippines and the US. Five to six thousand employees are expected to be laid off in the process.

Two assembly test facilities in Penang, Malaysia, one in Cavite, Philippines and a plant in Hillsboro, Oregon are affected in this exercise. Wafer production at a facility in Santa Clara, California will also end, the company said.

The moves were expected to affect between 5,000 and 6,000 employees worldwide.

Intel made the announcement via email to its employees on Wednesday morning, the Philippine Inquirer said.

According to the Philippine Inquirer, the announcement was half-expected as Intel announced its first batch of lay-offs in November last year. The rest of the employees were informed about succeeding phases in layoffs and that they will get their separation packages in three months' time.

"However, not all employees will leave; some may be offered positions at other facilities," said Intel in a statement. 

AP reported that Intel posted a whopping 90% decline in its fourth quarter profit last week, hurt by declining demand for its microprocessors amid the economic downturn.

The closures, "designed to align its manufacturing capacity to current market conditions" will take place between now and the end of 2009, Intel said.