It looks like Intel is getting seroius about cutting some fat in the battle with AMD. From the report they are looking to loose a 1000 jobs from now until the end of July. This is pretty major and might enable them to refocus on the things that are core to the business, rather than going after every area.
I hope that the inovations that they are making in their next releases of the XEON family are not damaged by this. I guess we will soon find out.