"Intel Corp. said it will cut 10,500 jobs, or about 10% of its work force, as part of the most significant restructuring at the chip giant since the 1980s."
"Intel said the restructuring moves, which include sales of underperforming business units, should generate $2 billion in cost savings in 2007 -- a figure that it expects to increase to $3 billion in savings annually. The company, which also expects to save $1 billion on capital spending, put severance costs at $200 million by next year." (From WSJ.com)
Although slashing jobs are extremely bad for people who are involved, it is a necessary way of improving efficiency, complacency and focus.