By John Oates
Published: 2 July 1998 12:27 GMT
Intel is reacting to continuing pressure in the chip market by temporarily closing two of its chip making plants in the US.
The two fabrication plants in Oregon both manufacture older .35 chips and will be closed from 4 July to 12 July. 1,700 workers will be sent home without pay during the nine day closure.
Originally the company planned to cut 3,000 jobs through natural wastage, but spokesman for Intel admitted that it was now offering severance packages to encourage staff to take redundancy.
The spokesman couldn't comment when asked whether workers at the plants would be likely to leave when faced with nine days without pay.
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