Ben Ames and Nestor Arellano

Intel Corp. Chief Executive Paul Otellini announced layoffs of about 7,500 more people Tuesday. Together with previously announced layoffs of middle-management executives and the sale of two business units in recent months, the actions will reduce Intel's workforce by a total of 10,500 people by 2008 -- about 10 per cent of the entire company.

The announcement by IBM Corp. that it will deploy Advance Micro Devices Inc. (AMD) processors on an additional line of blade and rack servers puts pressure on Intel Corp. to speed up its development cycle, according to a Canadian server market analyst.