Intel expects to reduce workforce by 5 per cent this year

Sees PC market stabilizing, but a year of flat sales ahead

Intel expects that its workforce will decline by 5 per cent as it heads into a year in which revenue is likely to be flat.

Intel announced its expectations for a decline in its workforce in the wake of its fourth quarter earnings report. The world's largest chip maker said Thursday that it saw signs that the PC market is stabilizing, and announced that fourth quarter profit was up 6 percent year over year, to $US2.6 billion, while revenue increased 3 percent to $13.8 billion.

The company said it had higher PC Client Group revenue, but that sales were hurt by slower growth in the Data Center Group.

The slump in the PC market was a drag on the company last year. Annual revenue declined 1 per cent to $US52.7 billion, while net income dropped 13 per cent to $US9.6 billion.

Intel forecast 2014 revenue and gross margins to be flat.

On Friday, the company said it expects to reduce its workforce by 5 percent in 2014.

"Intel will be aligning resources to meet the needs of the business this year," according to a company statement. "This will include targeted workforce reduction in addition to realignment of resources."

Intel noted that the usual rate of attrition in its staff is about 4 percent per year. A workforce reduction could be achieved though redeployments, voluntary programs, retirements, and through attrition, the company said.

The company employed 108,000 people in the fourth quarter, according to a filing with the U.S. Securities and Exchange Commission. So a 5 percent decline in staff would mean a reduction of about 5,400 employees, leaving the company with a workforce of about 102,600.

Though Intel dominates the PC sector, it is working hard to play catch up in the tablet and mobile device market. Among other things, it is paying manufacturers to make up for the extra costs associated with using Intel Bay Trail chips, rather than processors from rival ARM.

"From time to time we change organisational priorities and this can lead to the need for different skill sets within various organizations," the Intel statement said. "It can also mean that we reprioritise certain activities which can lead to movement of the work force from areas with little or slow growth to areas of growth as well as new businesses."

Join the Good Gear Guide newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issueslayoffsComponentsintel

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Marc Ferranti

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?