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Intel reportedly fires 250 employees over expenses

Posted: 23 Sep 2005 ?? ?Print Version ?Bookmark and Share

Keywords:software? chip test?

Intel Corp. has fired 250 employees in India for dishonestly claiming expenses, according to a report at The Times of India Web site.

The report quoted an Intel statement as saying "corrective actions have been taken." An unnamed Intel spokesman, who acknowledged internal investigations had taken place, provided no details. The newspaper also speculated that the Indian government may have prompted Intel to investigate employees, having complained that some were effectively avoiding income taxes by receiving generous expenses as part of their compensation. The Indian government could have been prompted in turn by negotiations over subsidies to entice Intel to build a chip test and assembly plant in India, the report suggested.

It is not clear where the Intel employees were based, but the report said an Intel development center in Bangalore employed about 2,700 engineers.

"This audit is confidential, so details will not be available. We don't comment on the specifics of investigations. We can say that we conduct all investigations thoroughly, professionally and in compliance with the law," the report quoted the Intel spokesperson as saying.

"Suffice to say corrective actions have been taken," the report quoted Intel as saying. And the report quoted another unnamed Intel source as saying, "I am also aware that some people have been fired after they were found guilty."

Submitting fake expense reports is widespread in India. The practice is fueled by cumbersome Indian tax laws that observers said encourage workers to submit fake receipts in order to be reimbursed for expenses.

EE Times correspondent K.C. Krishnadas in Bangalore reported that some Intel workers were also dismissed because the company had hired too many software programmers.

Peter Clarke

EE Times

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