I do not know of any time that Intel looked so vulnerable like now. I do not need to repeat here as most of you already know about Intel's bleak prospect for 2006 in terms of earning and making profit. I like to call it 'Intel Tsunami' because 1 year ago hardly anyone could predict that Intel would end up into this terrible position. Thus, 'Intel Tsunami' is sudden and a devastating shock for the share holders of the company. Shuffling of management may not be enough to stop the downslide. Now, it is clear to many observers that many workers in Intel will lose their jobs in the coming weeks. A few days ago, Intel announced firing nearly 1,000 managers and most probably another few thousand workers will be in the queue too in this regard. One of the countries that will be badly affected by this 'Intel Tsunami' is surely going to be India.
The loss for India will happen in two ways. First of all, a few hundred (or even few thousand) workers in India will lose their jobs. Of course, this is a big loss as Intel pays handsome salaries to these workers compared to many companies in India. However, I am not that sad or worried for these workers as they will get jobs sooner rather than later because of their experience with Intel. The only thing they may suffer is lower salary.
In the recent years, Intel has contributed to the Indian society through several projects. In its 'World Ahead Program', Intel has taken India seriously. Intel is also planning to introduce a very cheap PC in India. I am mainly worried about the future prospect of these initiatives in India. Naturally, Intel bosses may not want to increase their expenses on these kinds of projects when they will be forced to go for layoffs of workers in huge number. Unfortunately, Intel is among the major companies who are trying substantially to contribute to the Indian society and the common people of the country. So, if Intel does not go ahead with its plan to make PC and internet more affordable to the ordinary people in India, its social impact will be much more devastating than laying off 1,000 workers in India.
Thus, 'Intel Tsunami' may bring real devastation for India.
Do you agree with me?
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I sold my Intel stock earlier this year. The prospects are drying up.
India is very dependent on IT right now, isn't it?
Posted by: Darren McLaughlin | July 21, 2006 6:53 AM | Permalink to Comment