"The price of justice is eternal publicity." Arnold Bennett

Sample of Intel Internal Bulletins

The following bulletins/memos have been sent anonymously to FACE Intel by current employees of Intel.  These documents are published here in their entirety without any changes. 

We thank the current employees who are consistently sending us important documents so that we may provide useful information to current and former employees of Intel.


December 8, 2000 

A Message from Craig Barrett 

Comments on Fourth Quarter Financial Expectations:
"We announced yesterday that Intel will not meet its revenue goals for the fourth quarter of 2000. While disappointing, these results are in line with our industry, given the worldwide slowdown in demand for technology products. Virtually across the board, and in every geographic region, we have seen a decline in demand. Other technology companies
have also seen this decline, and as a result stock values have suffered. 


"It's important to note here that the technology business, like any other, is cyclical, and is subject to peaks and valleys as a complex set of factors conspire to either stimulate or retard growth.

"Intel has been through down cycles before, and each time it did, it has caused us to recommit ourselves to performing to the high standards that have served us so well over the years. We recognize that the only way to

successfully emerge from a down cycle is with new, exciting products.  This is where we have our greatest strength: with strong research and development groups, great process technology, and the industry's best factories. 

"It will also be critical for us to provide our customers with impeccable service while managing our own costs and focusing on achieving operational excellence.

"Going forward, you can expect to hear more on the importance of focusing on operational excellence. Sometimes this focus will demand a reevaluation of our strategies for execution. Every group within Intel is implementing an operational excellence program for 2001 and performance to this plan will constitute a majority of the Employee
Bonus Program for next year.

"Part of this focus on operational excellence will include reassessing our staffing needs. This is a normal business practice under these circumstances, and is a necessary step--not an extraordinary one--to keeping Intel healthy.

"For the next quarter, we expect headcount will remain appropriately flat. To meet staffing needs, we will first look to fill open positions internally with existing employees. Outstanding offers will be honored and recent college graduate (RCG) and intern programs will move ahead.  This is not a hiring freeze; we are and will continue to hire for key
positions. Each business group will manage their own process to achieve their headcount targets.

"We fully realize that going through difficult periods is challenging.  It was challenging in the past and it certainly represents a challenge now. But if history is any indication, the tough times can actually be a positive experience. From the hard times comes wisdom and stamina that we can use to move forward with renewed conviction as the premier supplier of building blocks for the Internet."

Craig Barrett
President and Chief Executive Officer

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December 7, 2000


Intel's fourth quarter revenue is anticipated to be below the company's previous expectation, primarily due to a slowing worldwide economy impacting PC demand, the company said today. As a result of recent large cancellations by customers worldwide, the company now expects revenue for the fourth quarter to be flat, plus or minus a couple of percentage points, with third quarter revenue of $8.7 billion. This is lower than the previous expectation that fourth quarter revenue would be up 4 to 8 percent from third quarter revenue.
The company's expectation for gross margin percentage for the fourth quarter remains 63 percent, plus or minus a point. Expenses (R&D, excluding in-process R&D, plus MG&A) in the fourth quarter are now expected to be approximately flat with third quarter expenses of $2.3 billion. This is lower than the previous expectation that fourth quarter expenses would be up 6 to 8 percent from third quarter expenses, due primarily to a slowdown in discretionary spending and lower revenue and profit dependent expenses. Interest and other is expected to be
approximately $675 million for the fourth quarter, down from the company's previous expectation of $950 million, due to lower than expected realized gains on equity investments as equity market levels fell during the quarter.
Business Outlook
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not reflect the potential impact of any mergers, acquisitions or other business combinations that may be completed after the date of this release.
The company expects revenue for the fourth quarter of 2000 to be flat, plus or minus a couple of percentage points, with third quarter revenue of $8.7 billion.
The company expects gross margin percentage for the fourth quarter to be 63 percent, plus or minus a point. In the short term, Intel's gross margin percentage varies primarily with revenue levels, product mix, changes in unit costs and timing of factory ramps and associated costs.
Expenses (R&D, excluding in-process R&D, plus MG&A) in the fourth quarter of 2000 are expected to be approximately flat with third quarter expenses of $2.3 billion. Expenses are dependent in part on the level of
revenue and profits.
R&D spending, excluding in-process R&D, is expected to be approximately $1.0 billion for the fourth quarter.
The company expects interest and other income for the fourth quarter of 2000 to be approximately $675 million. Interest and other is dependent in part on interest rates, cash balances, equity market levels and volatility, the realization of expected gains on investments, including gains on investments acquired by third parties, and assuming no unanticipated items.
The tax rate for 2000 is expected to be approximately 31.8 percent, excluding the impact of the previously announced agreement with the Internal Revenue Service and acquisition-related costs.
Capital spending for 2000 is expected to be approximately $6.5 billion, higher than previous expectation of $6.0 billion.
Depreciation is expected to be approximately $815 million in the fourth quarter, lower than previous expectation of $865 million.
Amortization of goodwill and other acquisition-related intangibles is expected to be approximately $460 million in the fourth quarter, higher than previous expectation of $440 million.
The above statements contained in this Outlook are forward-looking statements that involve a number of risks and uncertainties. In addition to factors discussed above, among other factors that could cause actual results to differ materially are the following: business and economic conditions and growth in the computing industry in various geographic regions; changes in customer order patterns; changes in the mixes of microprocessor types and speeds, purchased components and other products; competitive factors, such as rival chip architectures and manufacturing technologies, competing software-compatible microprocessors and acceptance of new products in specific market
segments; pricing pressures; development and timing of introduction of compelling software applications; insufficient, excess or obsolete inventory and variations in inventory valuation; continued success in technological advances, including development and implementation of new processes and strategic products for specific market segments; execution of the manufacturing ramp; shortage of manufacturing capacity; the ability to grow new networking, communications, wireless and other Internet-related businesses and successfully integrate and operate any
acquired businesses; impact of events outside the United States such as the business impact of fluctuating currency rates or unrest or political instability in a locale, such as transport disruption in Europe or unrest in Israel; unanticipated costs or other adverse effects associated with processors and other products containing errata
(deviations from published specifications); litigation involving antitrust, intellectual property, consumer and other issues; and other risk factors listed from time to time in the company's SEC reports, including but not limited to the report on Form 10-Q for the quarter ended Sept. 30, 2000 (Part I, Item 2, Outlook section).
Status of Business Outlook and related risk factors statements Intel expects that its corporate representatives will meet privately during the quarter with investors, the media, investment analysts and others. At these meetings Intel may reiterate the Outlook published in this press release. At the same time, Intel will keep this press release
and Outlook publicly available on its Web site <http://www.intel.com>. Prior to the start of the Quiet Period (described below), the public can continue to rely on the Outlook on the Web site as still being Intel's current expectations on matters covered, unless Intel publishes a notice stating otherwise.
Beginning Dec. 16, 2000, Intel will observe a "Quiet Period" during which the Outlook as provided in this press release and the company's quarterly report on Form 10-Q no longer constitute the company's current expectations. During the Quiet Period, the Outlook in these documents should be considered to be historical, speaking as of prior to the Quiet Period only and not subject to update by the company. During the Quiet Period, Intel representatives will not comment concerning Outlook or Intel's financial results or expectations. The Quiet Period will extend until the day when Intel's next quarterly Earnings Release is published, presently scheduled for Jan. 16, 2001.

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Intel Corporate Finance Employees in trouble

 TO:  Financial Services Organization

 FROM:  Richard Taylor

The Corporate Finance vision is to achieve Operational Excellence.  This year we have taken a big step towards this in our common core areas of AP, Accounting and Payroll.  As we come to the close of the year and the start of a new millennium I would like to recap on our successes and lay out for you the vision for the future.

The AP Strategy We have introduced Imaging capability in the US and successfully implemented RAPID in many other countries.  In addition, the 2000 implementation of Rapid in EMEA,Ireland & Denmark moves us significantly towards a standard AP tool set world wide.  AP continues to achieve its goals for TPT and on time payment demonstrating its commitment to excellence and desire to be best in class.  Looking forward we see a number of challenges:  

- Ecommerce will require us to adapt to new ways and methods of operating - we want to be a leader

- It's time to complete the Rapid tool set and leverage these capabilities worldwide.

- Our benchmarking indicates that we are, at best, a second quartile performer.

- We need a bold move to take us to the top quartile and keep us there.

My staff recently ratified a worldwide strategy for AP.  The strategy objective is to move over the next 3 years to a "hands free" AP organization using  existing Ecommerce tools and Corporate initiatives to the point where nearly all Intel supplier payments will be made electronically.  Success of this strategy will be achieved by flawless execution both of the project team and the operations who will continue to transact the day to day business.  Current AP managers will continue to run their functions while Jeff Lupinacci will lead implementation of the strategy.

The Payroll Strategy: 

Payroll has been a major source of focus and in 1999 we have achieved a lot.  The Payroll Rock Solid project in the US has improved control, introduced the Geni Payroll system and continues to move forward.

Overseas we have implemented standard payroll systems for Malaysia and the Philippines & EMEA and Ireland are using ADP as a single service provider.  In 2000 we will continue to work towards our objective of achieving Rock Solid in the US and high quality worldwide. 

The Employee Services Strategy:

It has become clear that fixing payroll in isolation is not enough.  Delivery of services to Employees such as SOP, medical benefits, Relo etc are also not at an acceptable standard.  To address this problem HR and Finance have formed a team to look at Employee Services (ES). The aim is to get a global ES capability (including payroll) that is world class.  The team is led by Dorothy Tannahill Moran from HR and Larry Walz from Finance.  The report out of their findings and recommendations will be presented in Q4 to Craig Barrett.  The Payroll organisation should expect that the ES recommendations will have a positive impact on our ability to achieve Payrolls primary objectives.

The Accounting Strategy:

In Accounting we have had a huge influx of M&A deals, reworked the Legal Entity Review process and continued to stay legal and in control, a fundamental requirement of the Finance Charter.  However, as regulations continue to change and the pace of acquisitions accelerates, the Accounting function is playing a continual game of catch up. In effect we are trying to deal with an evolving internet business using structures and processes which have not changed in the last 15 years.  David Goodstein has been chartered to conduct a review of our Accounting organization.  His challenge will be to craft a strategy to make Accounting more effective, streamlined, and an influential force within the Business.  Please note that this process is in its initial stages and will continue as work in progress throughout 2000. 

If we achieve a hands free AP function, make Accounting an influential force within the business and deliver flawless services to our Employees then we will indeed be "Operationally excellent".  This future is exciting but at the same time achieving this vision will require a period of substantial change.  Change is never comfortable and during that period rumours, uncertainty and confusion can cause far more worries than the true picture.  To deal with this we are establishing a communications team made up of Myself, Larry Walz, Lori Holmes, James Harwood and Devra Johnson from HR, Peter Iredale, Francis Lo and Jeff Lupinacci.  This teams charter is to ensure we have effective communication as our strategies continue to evolve. Feel free to discuss this memo or your concerns with me, my staff, your managers, supervisors or any other member of the communications team.

I hope you will agree with me that we face many exciting challenges.  Thank you for achieving great results in 1999 and with your commitment and drive we face an even more exciting future.

regards Richard

What Richard's double-talks and beating around the bush means is:  Intel will reduce headcounts in corporate finance, which means that folks will get targeted for termination.  WATCH YOUR BACK!  

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Intel's internally published news 2-20-99

From: McKean, John A on behalf of Employee Communication

Sent: Saturday, February 20, 1999 418 PM: Saturday, February 20, 1999 418 PM

Subject: EMPLOYEE BULLETIN -- 2/20/99 Intel Prepares for FTC Hearing: EMPLOYEE BULLETIN -- 2/20/99 Intel Prepares for FTC Hearing

INTEL PREPARES FOR FTC HEARING                      


From Intel Legal, Press Relations and Employee Communications 

Distributed by Employee Communications

February 20, 1999

Provided to Intel employees as background information.

Questions from the external press should be referred to Chuck Mulloy at Intel Press Relations


An FTC administrative law judge next month will hear a complaint against Intel filed by the U.S. Federal Trade Commission. The case involves Intel's right to protect and control its intellectual property.

The hearing is expected to last from ten to twelve weeks and it is likely to generate considerable press coverage. As a result, Intel's Legal Department has prepared the following summary of the case for Intel employees.

The hearing is scheduled begin March 9 in Washington, D.C. at the FTC headquarters. The FTC filed an administrative complaint on June 8, 1998, alleging that Intel violated antitrust laws because it withheld intellectual property from three customers who had sued Intel. In its complaint, the FTC staff claimed that because Intel's products and technologies are widely used, Intel should be held to a different standard for the sharing of intellectual property than other technology development companies.

The case revolves around a fundamental question of the proper interpretation of the law Was Intel within its rights to withhold its intellectual property from Compaq, Digital Equipment Corporation and Intergraph as part of its defense in intellectual property disputes? Intel believes the company was well within its rights. Intel also believes the FTC staff is trying to make new law in this case. Existing case law supports Intel's position. Intel believes the FTC action would upset the careful balance between intellectual property rights and existing antitrust law which has been established by Congress and the courts.

The hearing could involve as many as 40 to 50 witnesses. After the hearing is completed, the administrative law judge will rule on the merits of the case. Either or both sides of this dispute can then appeal the ruling to the Federal Trade Commissioners.  Intel, if neccessary, can then to the U.S. federal appellate court. Intel intends to work through the administrative complaint process and, if necessary, appeal to a federal court. Intel believes the outcome of the process will be a ruling that Intel's actions were lawful.

In the press, the administrative complaint against Intel may be compared to the ongoing U.S. Department of Justice antitrust lawsuit against Microsoft Corp. In fact, the two cases are substantially different. The Microsoft case is in federal court and involves the application of well-developed antitrust law. It does not center on intellectual property issues. The Intel case is an administrative complaint where, in Intel's view, the FTC is attempting to establish new legal precedent in both affecting intellectual property and antitrust law, in ways that would hurt the interest of Intel, the industry, and consumers generally.

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Intel's internally published news 1-7-99

January 7, 1999  WW02
Published by Employee Communications
Editor  Angela Volfer, (408) 765-1049

CIRCUIT THIS WEEK is a weekly summary of Intel news and information.  More details and more frequent updates are available at http//circuit.intel.com.  THIS WEEK IN THE WORKPLACE

*     The 1999 U.S. employee contribution and disability plan rates are now in effect. These new rates affect the Intel Medical and Dental plans and the non-California Voluntary Short-Term Disability Plan, and will be reflected on the first payroll check of January (Jan. 8 for nonexempt employees and Jan.   15 for exempt employees). Employees can verify their contribution amounts by visiting Circuit (http//circuit.intel.com), Employee Services, My Life, Benefits and then Health Insurance. For more information on the rate increase, see T-Comp News online at http//ease.intel.com/emp_comm/tcomp/oct98/pg4.htm/.

For additional information on the non-California Voluntary Short-Term Disability Plan, refer to the article on Circuit under Site News. Employees can also contact the OnCall Assistance Center at (800) 238-0486. 

*     Changes to the U.S. federal tax law in 1998 may have an impact on the sale of Stock Participation Plan (SPP) shares. The capital gain holding periods have changed. The changes do not affect the taxation of ordinary income realized on the sale. Net capital gains for SPP shares sold in 1998 will be taxed at a maximum rate of 20 percent. A 10 percent long-term capital gain tax rate applies to gains for taxpayers with marginal tax rates of 15 percent. These rates apply to the capital gain on SPP shares held for more than one year (long-term capital gain).   Capital gain on SPP shares held for one year or less is treated as short-term capital gain and will generally be taxed at ordinary income rates.  For more information and examples, visit http//circuit.intel.com/.

*     Intel Legal ended 1998 with two significant legal wins. The Court of Appeals for the Federal Circuit (CAFC) rejected an appeal by a former Intel employee who claimed patent infringement. He had lost his case in a lower court, but appealed. The CAFC ruled in Intel's favor quickly and decisively.  

Meanwhile in the Czech Republic, the Intel trademark legal team won a significant case against an individual who had registered "Pentium" for the sole purpose of trying to get money from Intel. The court ruled in Intel's favor in what could be a precedent-setting case.

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Intel's internally published news last Week, 11/2/98

Corporate Editors John McKean (505) 893-5740

Angela Volfer (408) 765-1049


Chips and Technologies, Inc. (Chips), a former subsidiary of Intel     Corporation, has been integrated into the corporation and will no longer exist as a separate entity. The Chips team will join the Graphics Components Division (GCD) groups in Folsom Calif., and Chandler, Ariz.

FACE Intel's comment:

Does FTC know about Intel's Global Group function?

Intel's Global Group (GG) is chartered to do one acquisition a month.  Meaning Intel is constantly searching for the companies that have technologies that either Intel needs or will be a viable competitor for Intel in future.  Once these companies are identified, in one way or the other Intel will gobble them up.  Then GG will integrate that company into Intel's system.  That means immediate layoff of at least one half of that company's employees.  In actuality this is not integration it's a complete annihilation of the company and its future.  We are sorry for Chips and Technologies and all involved.


Three days earlier, Intel President and CEO Craig Barrett announced plans for Asia's first Intel Application Solution Center (ASC). The center will provide help in the Chinese language environment for equipment manufacturers and software vendors using Intel's 32-bit and future 64-bit architectures. The $500,000 center will be located in Shanghai. Barrett visited India, Vietnam and China during his latest Asia Pacific tour Oct. 26-31.  

FACE Intel's comment:

Mr. Barrett acquires American companies like Digital's Hudson plant (Fab 17) and Chips and Technologies to annihilate them.  He lays off, forces out, terminates more 10,000 American employees.   At the same time he does anything in his power to pass a bill (H-1B visa), which will bring more than half a million of high-tech foreign workers into United States.   So, obviously  what he is doing in China is consistent with his Un-American activities.

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Intel's internally published news last Week, 10/15/98

Corporate Editors John McKean (505) 893-5740

Angela Volfer (408) 765-1049                  



Intel President and CEO Craig Barrett has thanked employees for their "support, innovation and flexibility," leading up to the company's third quarter revenue and earnings report. Intel reported record    revenue and microprocessor shipments during the quarter. "At the same time," Barrett said, "I want to stress the importance of continuing to watch expenses while moving faster than the competition."     Barrett's message to employees and the quarterly revenue and earnings report are both available in their entirety on Circuit (http//circuit.intel.com).

FACE Intel's commentMr. Barrett, if you really want to thank and appreciate your employees just stop lying to them, cheating them, and do not axe them to show higher profits.

In its third quarter revenue and earnings report, Intel reported that it has reduced headcount by approximately 2,000 people since the end of the first quarter, excluding approximately 1,800 people added as a result of the acquisition of Digital Equipment Corporation's semiconductor manufacturing operations. Employment worldwide was about 65,400 at the end of the third quarter. The company still plans to complete the rest of the scheduled 3,000 headcount reduction announced last spring and also has announced some additional employment reductions next year in Massachusetts and Puerto Rico.

FACE Intel's comment: Intel is shamelessly delivering more lies to employees whom they are constantly cheated on while deliberately kept in isolation and dark. We will publish the report of Intel's layoffs soon and you'll see that Intel's allegations are false and deceiving.

Intel's traditional worldwide Vendor of Choice (VOC) rating fell to 87 percent in the third quarter, compared to 93 percent in Q3 last year. Customers were most critical of constrained product availability,  missed delivery schedules and lines down situations due to Intel product roadmap/conversion strategies implemented throughout the quarter, said Nora Brodsky, VOC program manager. In order to trigger      an additional day's pay under the Employee Cash Bonus Program, Intel must maintain an average rating of 90 percent of higher in each six-month period.

The U.S. Senate had not acted by Oct. 14 on the extension of the H1-B visa program sought by Intel and other companies. But supporters of the bill still hope to obtain final Congressional approval of the extension this year.

FACE Intel's comment: Intel is laying off a huge number of employees, Intel is forcing 100's of other employees out, Intel is torturously terminating 100's of redeployed employees whom have been fallaciously told that they can find a job at Intel if they agree to be placed on redeployment, and Intel is mercilessly keeping out 100's of employees whom due to job related injuries are on Medical Leave Of Absent and cruelly depriving them of their employment rights. 

Then shamelessly and emphatically Intel lies to the whole nation by claiming that Intel has shortage of skilled labor.  Through lobbyists Intel has and is spending millions of dollars to corrupt our legislators to pass a bill (HR 3736), which passed a few days ago, to increase annual quota of H-1B visa from 65,000 to 115,000.  This is all done for one reason, TO REPLACE AMERICANS WITH CHEAP FOREIGN WORKERS.  Intel has become so callus that is boasting about their major role in disastrous H-1B visa conspiracy. 

This very Un-America plot will render a lot of older American workers unemployed until they change their life style and find a low-paid job.   What Intel and other cruel corporations did will glut the job market in high-tech job market, the salaries will decrease and  American standard of living will be undermined.

The Human Resources legal team reminds employees to use e-mail, the Intranet and Internet professionally and wisely while at Intel. Intel's E-Mail, Internet and Computer-Use Guideline governs employee computer use and prohibits viewing, downloading, or linking to material that is offensive, abusive, obscene, defamatory or threatening. Examples of prohibited material include pornography, personal attacks, racial/ethnic or gender-based slurs or jokes, profanity, or any material that violates Intel's Harassment Guideline. All inappropriate use of these resources is monitored and may result in disciplinary action up to and including immediate termination.

FACE Intel's comments: In the other words, Intel is spying on employees and deprives them of their freedom information and expression.  Intel is exercising censorship and ruling with iron-fist. 

Intel lies, cheats, manipulates law and lawmakers, manipulates people's life and their future, spies on people, enforces censorship, conducts unlawful employment practices, and forcefully destroys competition and opposition.  What can we call all of these behaviors?

These are characteristics of a dictatorship regime.  But for sure we live in a democracy, so then this must be a DICTATORSHIP INSIDE A DEMOCRACY.

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09/22/98......BRIEFINGS......BRIEFINGS.......BRIEFINGS........09/22/98      ----------------------------------------------------------------------

The following Intel BRIEFINGS contains information which has been prepared for public release in Massachusetts.  A similar general statement for Intel employees will appear in Circuit (http//circuit.intel.com) under Business Transition Update.  Do not post.        ----------------------------------------------------------------------

                             John McKean, Editor  (505)893-5740 RRT-79                              



As part of the continuing effort to reduce costs and improve efficiency in manufacturing, Intel will scale back manufacturing employment levels at Fab 17 in Hudson, Mass. Approximately 675 manufacturing positions will be eliminated. Most of the reduction will  occur in 1999. The site currently employs about 1,600 people.    

Fab 17 will continue to manufacture Intel semiconductor products such as  Strong ARM* processors, PCI bridge products and networking products. It also will continue to manufacture Alpha* microprocessors and chipsets under the terms of an agreement originally signed with Digital Equipment Corporation.      

This action affects only manufacturing operations at Intel's Massachusetts site; it has no impact on the design, development and marketing support groups located there.  The manufacturing action is consistent with Intel's on-going effort to improve cost effectiveness in all of manufacturing operations.

Employees whose jobs are eliminated will be able to identify and apply for other positions within Intel, but the number of opportunities is limited. Outplacement assistance and financial benefits will be provided to those employees who separate from the company.

Intel will continue to maintain its presence in Hudson and recognizes the strategic value of a presence in Massachusetts, which is close to key customers and provides access to a highly qualified workforce and world class educational institutions. 

Senior managers in Massachusetts are providing more specific information about the decision in meetings with employees. 

Please refer press calls to Bill Calder at (503) 264-5669 or Ann Hurd at (978) 568-7733.




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09/04/98......BRIEFINGS......BRIEFINGS.......BRIEFINGS........09/04/98 ----------------------------------------------------------------------

The following Intel BRIEFINGS is from Human Resources.

It is provided for your background information. ----------------------------------------------------------------------

John McKean, Editor (505)893-5740 RRT-79 ----------------------------------------------------------------------


Earlier this week, many Intel employees received an unsolicited bulk communication through the company's electronic mail system from an individual claiming to represent an outside group calling itself FACE.   The messages appeared to be addressed to individual employees, but, in fact, were delivered in bulk through the Internet gateway and appeared to have been sent at random.

It is Intel's view that this kind of communication constitutes misuse of the company's electronic mail system and the company has and will take steps to prevent it from occurring in the future.  Outside individuals wishing to express their views about Intel have every right to do so.  They do not have the right to use Intel's internal business systems for that purpose.

Employees who have questions or concerns about this message should talk with their manager or contact the On Call Assistance Center at (800) 238-0486.


09/04/98...end...briefings......end.....briefings....end.....09/04/98 ---------------------------------------------------------------------

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Updated August 20, 1998 WW34

From Employee Communications

Intel has begun an important transition to align its resources with updated business plans.  During the next few months, Employee Communications will provide periodic Business Transition Updates. 


Equipment Investments Also Planned to Make Site More Cost Competitive In a continuing effort to drive lower costs and identify additional manufacturing efficiencies in the current business environment, Intel will scale back employment levels at the Puerto Rico site and invest in new equipment over the next year to make the systems manufacturing facility cost competitive.

The current plan is to reduce the number of regular full time employees gradually by approximately 500-700 people over the next year.   The actual number will be affected by a variety of factors, including employee retirements and attrition, employee transfers and business conditions. The site currently employs 2,500 people

At the same time, to improve efficiency and reduce costs, Intel Puerto Rico will be phasing in new line layouts and moving to a 24-hour, 7-day a week schedule in some areas of manufacturing. The installation of new high volume manufacturing equipment at the site will make the site cost competitive and increase production capacity.

Intel has been operating in Puerto Rico since 1980. Today, the site consists of three dedicated systems manufacturing plants that produce desktop motherboards, server boards and branded networking products. Costs currently are not competitive with manufacturing suppliers of similar products in other regions of the world.

Intel will continue to invest in the Puerto Rico site and will take steps necessary to competitively manufacture desktop motherboards, server boards and branded networking products there. Intel has worked closely with the Puerto Rican government to identify additional measures to support continuing investment and to drive lower overall operating costs.

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Intel's Technology and Manufacturing Group (TMG) is offering certain U.S. employees a voluntary separation package, beginning in workweek 28. This program will permit TMG organizations to meet previously-announced headcount targets and may create additional internal job opportunities for high performers in TMG businesses.

The voluntary separation package will be offered to two groups of employees at TMG businesses in the U.S.

* a limited number of employees in specific targeted positions on a first come first serve basis. Employees eligible for voluntary separation will have from July 13 until July 24 to elect.

* all employees with specific documented performance issues.

Employees who separate under this program will receive four months pay plus additional pay based on length of service, extended benefits and outplacement assistance.

The TMG voluntary separation program is being communicated directly to employees by managers in that group. A general internal announcement will be included in Circuit (http//circuit.intel.com) as a Business Transition Update. The program is receiving some external press coverage, as well.

Separately, TMG has announced that Fabs 5 and 15 and Sort at the Aloha campus in Oregon have suspended operations from July 4 to July 12. This includes a normally-scheduled July 4 warmdown. The extended warmdown will allow the Aloha campus manufacturing facilities to spread out work that would have been started in workweek 28 over a longer period of time and to reduce inventory. The warmdown wasannounced to employees in Oregon in early June.

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05/28/98....................................Andy's  message...................................05/28/98

Subject:   Andy's message

Date:        5/28/98 652 P       

I attended a IJKK Open Forum Q & A session as well.  One guy asked him:

"How to work so hard and be so stressed and not take it out on your family." 

Andy's response was awesome.  He said:

"Don't delay satisfaction to your family, the next week will not be easier.  He said we are running a long distance marathon not a sprint."

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05/15/98............BUSINESS TRANSITION UPDATE................05/15/98


Intel has begun an important transition to align its resources with updated business plans. During the next few months, Employee Communications will provide periodic "business transition updates."



Intel business groups are completing the zero-based budget (ZBB) reassessment that was previously announced by Craig Barrett. Part of this process includes reducing worldwide headcount by approximately 3,000.

Our ability to respond to changing business conditions is critical. We appreciate your efforts to remain focused yet flexible as we structure ourselves for continued success. We recognize that this isn't always easy and many of you have expressed an interest in knowing more details about how we will achieve our goals.

Following is a consolidated list of common questions and answers related to this transition



Q Are there going to be layoffs?

A While we hope to avoid layoffs, there may not be internal job opportunities for all employees impacted by revised plans. We will maximize internal opportunities for redeployed employees where possible.

Q Will "normal attrition" take care of the reduction?

A We expect "normal attrition" to play a significant role in achieving our headcount goals. However, it may not be sufficient in some areas given changing business conditions.

Q Who is determining whether my current position will be affected and when will I know?

A The company's senior managers will make these decisions based on Intel's strategic direction and market conditions. Some business groups have communicated their plans; others are finalizing their decisions. Affected employees will be notified as soon as possible.

Q What role does redeployment play?

A Redeployment programs provide job search time and support for eligible employees who have been impacted by changing business conditions. Intel has used redeployment since 1990 to enable employee movement to areas of greater return. While the precise structure of the program is subject to modifications, we will continue to use redeployment to help manage change. )


Internal Movement

Q Will there still be internal jobs available?

A Yes.

Q Do redeployed employees get first priority for internal positions?

A Hiring managers give equal consideration to all internal candidates. Human Resources will take steps to make sure hiring managers are aware of qualified redeployed employees.

Q My manager won't let me transfer right now. What can I do?

A Ask your manager to explain his or her reasons in terms of business needs. Request a target date when you will be allowed to transfer.

Q How will slower growth affect my advancement opportunities?

A We remain positive about the long-term outlook for both Intel and the computing industry. In addition, Intel's commitment to adapt to a dynamic industry continually generates new career opportunities for employees.


External Hiring

Q Why are we doing any external hiring at all?

A External hiring is permitted only for a critical position when there are no available internal applicants with the required skills.

Q Why is Intel still hiring recent college graduates, recent technical graduates and interns?

A College hiring has been reduced dramatically for 1998. However, some activity will continue as these programs have long-term strategic value.

Q Why are we adding employees through acquisitions?

A One of our corporate strategic objectives is to cultivate new businesses. To do that, we look internally for resources and we also seek ways to grow our business through acquisitions. Often, the skills and expertise of the employees are among the most important assets we acquire.

Q I can't find any qualified internal candidates. How do I get approval for external recruiting?

A Each business group has its own approval process consistent with required skills and overall headcount targets. External requisitions typically require approval from a member of Intel's Executive Staff or a general manager.

Q When Intel Contract Employees (ICEs) apply for positions, are they considered external applicants?

A Yes.

Q Are we still hiring temporary employees or contractors?

A Hiring managers are expected to make every effort to utilize internal resources, including redeployed employees, before hiring temporary workers or contractors. Members of the staffing organization currently are working with our temporary agencies to explore ways to efficiently and effectively facilitate this process.

Q What about candidates with outstanding offers? Will we honor those offers?

A Yes. We will honor all outstanding offers. [Managers should keep future employees informed of any changes in the specific position for which they were hired.]


The preceding employment update is sponsored by Zoanne Hennigan, worldwide staffing manager for Intel. Business Transition Updates also are posted on Circuit (http//circuit.intel.com) and the questions and answers will be updated periodically.

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05/15/98 ............INTEL EMPLOYEE BULLETIN .............5/15/98


The following message is from Craig Barrett, president and chief operating officer.



Effective June 1, 1998, we are announcing several organizational changes within Intel.

With the announcement of the retirement of Frank Gill following his 23 years at Intel and his substantial contribution to our overall success (see press release at http//www.intel.com/pressroom), we are disbanding the Small Business and Networking Group (SBNG) and are reassigning the resources to other Intel Groups. Specifically

. The Reseller Products Division (RPD) run by Jim Yasso will become part of the Intel Architecture Business Group and will report to Paul Otellini. RPD will continue to lead Intel's small business thrust and dealer channel marketing activities.

. The Reseller Channel Operation (RCO) run by Tom Kilroy and Gerry Greeve will become part of the Sales and Marketing Group and will report to Sean Maloney. RCO will continue to focus on strengthening our reseller channel sales and design win capability.

. The Network Products Division (NPD) run by Mark Christensen will become a separate business operation reporting to the Executive Office. NPD will continue to focus on developing and selling networking equipment through both our OEM and indirect distribution/reseller channels.

Several of the new business startup activities within SBNG will move to a new Group to be headed by Gerry Parker. This new Group will be called the New Business Group (NBG) and will be chartered with starting and nurturing new businesses for Intel, as well as working to create new uses and new users for the personal computer. Reporting to Gerry Parker in his new role will be the following

· The Intel Architecture Labs (IAL) run by Craig Kinnie. IAL continues with its charter to support the Intel Architecture computing platform with new technology, as well as explore new uses for PC/Internet computing.

· The Content Group (CG) run by Ron Whittier. CG has the charter to develop new content for the personal computer to showcase our latest microprocessors, as well as explore new business opportunities for PC/Internet computing.

· The new business start-ups included in the New Business Group include the Internet Services Operation run by Jim B. Johnson, the Business Communications Products Operation run by Scott Darling, the Systems Management Division run by Ed Ekstrom, the Home Networking Operation run by Dan Sweeney and Steve Kassel, the Digital Imaging and Video Division run by Don Whiteside, and Pandesicä LLC, jointly owned by Intel and the German software company, SAP, and headed by Harold Hughes. The New Business Group will also have the responsibility to identify and fund new business startups within Intel.

Replacing Gerry Parker in managing the Technology and Manufacturing Group will be Mike Splinter and Sunlin Chou. Mike will have the responsibility for operational and manufacturing issues and Sunlin will focus on technology development.

All affected organizations will shortly be issuing new organizational memos to describe these changes in more detail.

Effective with these changes, membership on Executive Staff (ESM will be expanded to include Jim Yasso, Mark Christensen, and Sunlin Chou.  Ron Whittier and Craig Kinnie will continue to serve on ESM.

Employee Bulletins are published by Intel Employee Communications.

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News - Oregon Edition, Intel This Week 05/21/98

Corporate Editor Gary D. Fackler (408) 765-6511

Site Editor Dana Vandecoevering (503) 264-4616







- IN BRIEF ...

o Enhanced Jobs Online Web Site

o Distribution of One Digital Day

o Business Transition Updates

o Barrett Elected Chief Executive Officer



- Phone Policy and Technology at Intel














A new business group headed by Gerry Parker has been established at Intel.  The New Business Group (NBG) will be chartered with starting and nurturing new businesses at Intel, and creating new uses and users for PCs.

The NBG will be partially comprised of elements of the Small Business and Networking Group (SBNG), which were reassigned following the retirement of 23-year veteran Frank Gill.

Former SBNG groups now reporting to Parker will be the Intel Architecture Labs (IAL), the Content Group (CG), and a group of new business startups, including the Internet Services Operation, the Business Communications Products Operation, the Systems Management Division, the Home Networking Operation, the Digital Imaging and Video Division and Pandesic(TM) LLC.

Replacing Gerry Parker as head of the Technology and Manufacturing Group (TMG) will be Mike Splinter, who will oversee operations and manufacturing, and Sunlin Chou, who will focus on technology development.

All above organizational changes will be effective June 1.


Some 1,800 former employees of Digital Equipment Corporation's semiconductor manufacturing operations in Hudson, Mass., have traded their Digital IDs for blue Intel badges, marking the completion of the unit's acquisition by Intel.

As part of the deal, Intel acquired a former Digital plant, which will be designated Fab 17 and will be headed by Brian Krzanich, a transplant from Intel sites in New Mexico and Arizona.


On Wednesday, May 19, Ireland Assembly/Test Operations achieved a milestone, producing its one millionth single edge contact (SEC) cartridge. The Leixlip site has been producing the cartridge packaging for Pentium(R) II processors since late February. Since then, two more production lines were added and a fourth will go online in late June.

The plant, co-located with Fabs 10 and 14, was formerly a systems manufacturing facility.


"Noninvasive Optical Method for Measuring Hemoglobin in a Fingertip."

"Three-D Computer Graphics Visible-Surface Determination Using Hierarchical Beam Tree Clipping."

The latest published science research in Nature magazine? Nope. They are the handiworks of 16-year-old Karen Mendelson, Worcester, Mass., and 17-year-old Geoffrey Schmidt, Little Rock, Ark., respectively, the top two teens in the 1998 Intel Science and Engineering Fair (Intel ISEF).

All told, more than $2 million in scholarships and prizes were awarded 1998 to some of the world's brightest scholars.



Intel's enhanced Jobs Online Web site offers features like daily requisition updates, the ability to search requisitions opened since a specific date and a search option for jobs at "all U.S. sites."


Distribution of the book One Digital Day, which chronicles the effect of the microprocessor on modern society, is concluding this week for employees hired before Feb. 15. If you did not receive a copy, contact Alesa Taylor at ataylor@hibbertco.com; (303) 297-1601. Employees hired between Feb.  16 and May 31 (the official cutoff date) will receive books in the next few months.

A series of Business Transition Updates available on Circuit (http//circuit.intel.com) informs employees of Intel's response to a changing business environment. The first update, available now, explains some of the anticipated employment changes.

Intel President Craig Barrett has been elected chief executive officer.  The move, which had been announced previously, became official following the Annual Meeting of Stockholders May 20 in Santa Clara, Calif. Andy Grove will continue as chairman.


Q Does Intel have a policy on the use of iNET for business calls from home outside regular working hours?

A To access an audio conference when not on an Intel site, the preferred method is to use your corporate calling card. This method ensures quick access for you and substantial discounts for Intel. For more information on corporate calling cards, please visit the Intel AT&T Corporate Calling Card Web page at

(http//it.intel.com/ IT_Products/Pager_Telephone/calling_cards/cc_index.shtml)

Laura Cantor Conferencing Product Manager IT Network Products

Q In the market place, there is a lot of discussion around utilizing the Internet for making phone calls. Is Intel looking into how we can use our extensive existing computer networks for telecommunications?

A Using the Internet for making and receiving telephone calls is definitely gaining momentum in the market place. At Intel, we have been using our data networks to transport voice calls between Intel plant locations for several years. This service is known as iNET. When a caller dials "8" the call is converted to data, compressed, and routed over our private encrypted data network at a substantially lower cost than the public telephone network. iNET saves Intel more than $18 million per year on calls between Intel locations.

Outside of Intel, the biggest challenge voice over IP [Internet Protocol] faces is the quality of service. With IP voice, packets of data are routed at best effort and compete with all services, making it difficult to achieve consistent quality of service. Information Technology is watching this capability and will continue to evaluate the progress in solving the quality issues as well as understanding the right price point for competing against traditional circuit switched services.

Mike Powell, Manager Telecommunications & Network Planning Information Technology




Intel has joined forces with the Hillsboro Chamber of Commerce and New Tech Electric to build the Hillsboro community Float for the Grand Floral Parade June 6. The float, which is called "Ticket to Ride" will depict four airplanes flown by a toucan, bear, beaver and frog.

Due to the number of employees who enjoy digging into coconut, glue and paint to decorate floats, Intel volunteers will decorate the Southwest Airlines float in addition to the Hillsboro community float.

Volunteer opportunities are still available May 30, 31 and June 4. To sign up, visit http//intel-involved.intel.com/oregon or call the Rose Festival hotline at 591-2310 Monday through Friday from 8 a.m. to 5 p.m.

After the parade, guests can visit the Intel/Hillsboro Chamber of Commerce at the Showcase of Floats. Volunteers will be available to explain how the float was constructed and what flowers were used to decorate it.



What would you do if disaster struck? If you are a member of Intel's Emergency Response Team (ERT), you would know exactly what to do. More than 70 ERT members put their emergency response training to use as volunteer "victims" for emergency exercises involving a derailed MAX car and simulated tunnel fires.

Firefighters from Tualatin Valley Fire & Rescue, the Portland Fire Bureau and area hospitals staged a disaster in the Tri-Met's Westside MAX tunnel to test their emergency response plans for the tunnel, which will open in September.

The first drill was a simulated train derailment that involved 100 injured passengers, 30 of whom were critical. Participants applied theater-style makeup to victims to fake injuries. Once rescued, the victims were taken to local hospitals.

The second drill was a simulated tunnel fire that involved 60 injured passengers, six of whom were critical.

Alana Wills, Non-Fab ERT manager from Security and Tim McCarthy, ERT team leader, coordinated Intel's involvement. Wills uncovered the opportunity through her involvement with various rescue teams. "I was trying to find a no-cost team-building exercise for the ERTs," says Wills. "I heard about the simulated disasters and knew it was a win-win for everyone involved."

McCarthy, a customer support engineer, is also a member of the Medical Response Team at Intel. "Being in the patient role is an interesting way to improve your medical response skills," he says. "You take notice of the 'little things', like the fact that

backboards aren't really that comfortable after laying on them for an hour, and the importance of covering a patient with blankets and insulation to keep them warm and comfortable.  Participating in simulation drills from a patient's perspective will make us better responders."

A final drill, a simulated platform fire, will be held before Westside MAX service begins. The simulation drills will assist Tri-Met as it develops emergency plans for North America's deepest transit station.

To learn more about becoming an Intel ERT member, visit the ERT Web site at http//www-isite.jf.intel.com/ert/.



It's time to start tallying up your Volunteer Matching Grant (VMG) hours for the 1997-98 school year. The VMG forms are due June 30. "It's important for volunteers to start summarizing their hours for the year now," says Jennifer Williamson, VMG coordinator. "A school official must complete a portion of the form and if you wait until school is out, it may be too late."

Through the Intel Foundation's K-12 VMG Program, active regular or part-time Intel employees can volunteer at public or private schools and earn money for the schools at the same time. 

For every 100 hours Intel employees volunteer in schools, the Intel Foundation will grant $500 to a school. The volunteer hours may include the cumulative efforts of any number of Intel employees. Each additional 20 hours of volunteered time earns another $100. Examples of eligible activities include National Engineers Week activities, in-class presentations, tutoring and participating in career days.

Employees can pick up VMG forms from campus cafes or break rooms.   For additional information contact Williamson at 264-9266.



The junior class from Sherwood High School spent half a day at the JF campus researching various careers at Intel. Their visit was part of a pilot program designed to help the students earn their Certificates of Advanced Mastery (CAM), which are mandated under Oregon's Education Reform Act. Students must fulfill certain job-readiness steps to graduate by 2001.

Intel employees talked to students about their jobs and the paths they followed to get them, including education, training, skills and community involvement. Each student explored two of six career areas human resources, arts and communications, business management, health services, natural resources and engineering.

The half-day visit to Intel provided 120 students opportunities to fulfill several specific CAM requirements. The students shadowed employees on their jobs, toured the Intel site and participated in mock interviews.

"We wanted to provide the kids a glimpse of what their futures may hold," says Jennifer Williamson, education coordinator. "Our goal was to help the students realize their own potential and what they need to do to achieve the future they want."



As a cost-cutting measure, access through the JF1 Southeast lobby will be limited starting June 1. The lobby will be open only from 7 to 9 a.m. and 445 to 545 p.m. to provide access to employees when they arrive in the morning and leave in the evening. For questions, please contact Dave Gulosh, OR Site Security, at 264-0001.



IGLOBE (Intel Gay, Lesbian, Transgender or Bisexual Employees) will hold its annual Face to Face (F2F) meeting in Oregon June 19-21. Event organizers say this is a great opportunity to meet fellow employees, recognize accomplishments and contributions, and make plans for the future. This year's F2F is scheduled to coincide with Portland's Gay Pride Festival. This event is open to all interested Intel employees. Visit the IGLOBE intranet site at

http//iglobe.intel.com for conference registration and information.

IGLOBE provides a forum for Intel employees in affirmation of Intel's commitment to equality, diversity and making Intel a great place to work.



The Annual Stockholder's Meeting was held in Santa Clara on May 20. As a reminder, employees can check out a video tape of the meeting by calling the Intel Library at (iNET) 552-4636 or go to http//library.intel.com and choose "make a request." (Available after May 25.)



You have the opportunity to bring yourself up to date on the principles of software engineering, learn about modern metrics and polish your communication skills. Three graduate courses will be offered this summer by the new joint Oregon Master of Software Engineering degree program sponsored by the Oregon Graduate Institute, Portland State University, Oregon State University and the University of Oregon.

The fee for each course is $576. If you are interested in learning more about the new software engineering degree program or the courses that will be offered this summer, visit the OMSE program's Web site at

http//www.cs.pdx.edu/omse or contact Bruce Schafer, program director, at 725-2900.

"Principles of Software Engineering" is the first course in the Master of Software Engineering degree. The course will run for ten weeks starting June 23. Students will study alternative software development paradigms and processes. The course will cover the actual benefits that these paradigms and processes can produce as well as the problems that can arise. Students will learn how to choose the appropriate paradigms for actual projects and customize the processes to produce the best combination of control, quality and rapid product development.

"Professional Communication Skills for Software Engineers" will run for ten weeks starting June 24. The course will cover the nontechnical skills that make a difference when software is developed by a team of individuals working together. Students will learn the skills needed to conduct efficient meetings, resolve disputes, work successfully in a team environment and make ethical decisions.

"Using Metrics and Models to Support Quantitative Decision Making" will run six weeks starting July 24. This course will cover how metrics can be combined with formalized decision models to support decision-making by software project leaders and managers. It will provide the knowledge and skills needed to apply quantitative tools to make decisions in situations where a great deal of uncertainty exists.


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