Intel Plans to Cut 600 Jobs in Bid to Slash Overhead

Intel Corp., one of the nation’s top computer chip makers, said Wednesday that it will eliminate up to 600 jobs, or 3% of its work force, in an effort to boost competitiveness.

The company is launching a major drive to cut costs throughout the corporation and is looking at ways to reduce overhead and factory positions.

“We operate in an aggressive, unforgiving marketplace. While our financial position is solid and demand for our products is strong, our objective is to make sure we stay in good shape as we enter the 1990s,” Chief Executive Andrew Grove said in a prepared statement.

“This requires that we work steadily at reducing our costs and shifting resources from low to high areas of return,” Grove said.

The jobs will be eliminated this year, Intel said. The company has created a placement program to move as many affected employees as possible into new positions, but a small number are expected to be laid off. Intel now employs about 20,000 people.

Intel did not say exactly where the cuts would apply.