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Intel studies cuts in Indian workforce

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June 09, 2006 05:31 IST
Intel's worldwide plan to downsize its workforce by 16,000 in the near future is likely to have an impact on its Indian centre as well.

This will be the first time since the dotcom bust that an important IT MNC is seeking to downsize its Indian operations.

Intel, which has a staff strength in excess of 3,000 at its large campus in Bangalore, has reportedly initiated a study titled "Efficiency Programme" to identify positions that are expendable. Business Standard has learnt that the report will be ready within the next 30 days.

Intel executives confirmed the initiation of the efficiency programme. Responding to this newspaper, Intel said in a statement: "There are no preconceived specific outcomes of the efficiency programme. We do expect to have fewer employees than we do now as a result of attrition, redeployment and changes to Intel's business."

In all likelihood, the core strength of Intel India, the Research Group, will also not be spared.

"This apart, there are nearly 1,000 staff who have been outsourced from various sub-contractors. Intel will probably aim at reducing its dependence on these contractual workers. The exact number of jobs to face the axe will be known only after the study is completed," sources indicated.

There are two categories of staff in Intel India -- the Blue Badge (permanent staff) and the Green Badge (contractual staff). The Blue Badge category consists of the Research Group, which roughly has a strength of 1,500.

They include engineers, diploma-holders and technologists engaged in projects related to digital products, platforms and new architecture.

A majority of the Green Badge staff belong to the IT group (strength of nearly 1,000) and lend support to the Intel staff.

"Many of them occupy posts of managers and semi-managers responsible for various activities like ensuring coordination and providing facilities to the staff. Many of these positions may be done away with," the sources said.

Apart from its Bangalore centres, Intel has a sales and marketing team of about 40 employees based in New Delhi and Mumbai. They are likely to be retained to focus on marketing.

Aravind Gowda in Bangalore