It's been common knowledge since April that Intel
But then, in May, Gordon Graylish, Intel's vice president and general manager for Europe, told Reuters that Otellini wasn't considering layoffs among the available options. I'll admit that had me wondering. I mean, come on, what kind of restructuring doesn't involve layoffs? Well, apparently, the kind that involves selling losing businesses.
Over the weekend, San Jose Mercury News reporter Dean Takahashi published an illuminating story that suggested Intel's strategy is to shed losing businesses it, at one time, paid $10 billion to acquire. The list includes its Xscale unit, which provides chips used in Research In Motion's
Together, these two groups accounted for $400 million in 2005 revenue, according to the Merc. There's no word on how many personnel would be cut from Intel's rolls if a sale went through, but I doubt the number would be significant. After all, $400 million is hardly more than a rounding error for Intel, which booked $38.8 billion in business during 2005.
Still, if the Merc has it right, I give Intel and Otellini credit for getting focused. Advanced Micro Devices
Allow us to chip in with related Foolishness:
- AMD may be for real, but it's hardly the end of Intel ...
- ... even if Dell
(NASDAQ:DELL)is still a dog.
- Maybe it's time for NOR flash to shine?
Intel is a Motley Fool Inside Value selection. Ask us for anall-access passto the service and you'll be privy to chief advisor Philip Durell's best picks, which collectively are beating the market by more than 4%. You'll also receive instructive lessons on valuation and company analysis. Give Inside Value a try. It's free for 30 days.
Dell is both a Motley Fool Stock Advisor and Inside Value pick, and Palm is a Stock Advisor pick.
Fool contributor Tim Beyers thinks Intel has been sleepwalking through much of the past three years. He wonders what will happen when the giant finally awakens. Tim didn't own shares in any of the companies mentioned in this story at the time of publication. You can find out which stocks he owns by checking Tim's Fool profile . The Motley Fool has an ironclad disclosure policy .
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