Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Chips & Processors
24/7/365 Network Uptime
Average Rating:
Rate this article:  
Intel To Cut More Than 5,000 Jobs
Intel To Cut More Than 5,000 Jobs

By Barry Levine
January 17, 2014 2:41PM

    Bookmark and Share
As chipmaker Intel faces a year with virtually no growth in revenue, the company is set to cut about 5,350 jobs from its global workforce of 107,000. Although Intel's fourth quarter earnings of $2.6 billion on revenue of $13.8 billion were up 3 percent from a year ago, Wall Street analysts were expecting slightly higher earnings.
 



The world's biggest chipmaker, Intel, has announced that it is cutting its global workforce by some 5 percent this year, or about 5,350 of its global workforce of 107,000 employees. The cutback was decided following Intel’s projection of virtually no revenue growth this year, and will be accompanied by the company’s re-orientation toward mobile and other markets.

A company spokesperson told news media that the move is “part of aligning our human resources to meet business needs.” Intel has not yet said where the cuts will be made, or how they might affect departments or product lines.

On Thursday, CFO Stacy Smith told analysts that Intel would be increasing its investments in some areas that, unlike PCs, hold more promise going forward, such as chips for mobile devices.

PCs Decline Only 3 Percent

Earlier this week, the company delivered a fourth quarter earnings report that received a mixed reaction.

The firm's fourth quarter earnings of $2.6 billion on revenue of $13.8 billion were actually up 3 percent from a year ago, but Wall Street analysts were expecting slightly higher earnings. Total earnings for 2013 were $9.6 billion on $52.7 billion in revenue, a drop of 1 percent from 2012, and the company said it expected essentially no increase in revenue in 2014.

PC sales in the fourth quarter are actually higher than a year ago at the same time. According to industry research firm IDC, PC shipments dropped 10 percent last year, however, Intel said its PC business declined only 4 percent. But, while Intel’s chip sales for PCs are beginning to even out, server chip sales have been disappointing.

‘Overestimated Rate of Recovery’

CEO Brian Krzanich told investors and analysts that Intel had “overestimated the rate of recovery among corporate buyers,” and added that 2014 was now looking like a slower recovery for computing purchases among businesses. The company’s data center-related business grew only about 8 percent in 2013, while analysts had been expecting double-digit growth.

Krzanich has pointed in particular toward the potential of Intel-based tablets, one of several mobile markets that the company has been emphasizing, along with the emerging market of wearables. He has declared a goal of selling 40 million tablets this year based on Intel chips, a substantial increase over the 10 million Intel-based tablets sold last year. Coming up this year are Android tablets using the new Intel Bay Trail chips, which are expected to hit the market in the second quarter.

In addition to a weaker-than-expected business market, Intel has also been facing stiff competition in mobile devices from ARM-licensed chips. At the recent Consumer Electronics Show in Las Vegas, Intel received some press for demonstrating wearable devices that were, in fact, using chips based on ARM designs. The devices were shown during a presentation by the CEO, as he was discussing the evolution of computing from “screens and devices to a world of immersive experiences.” Intel later acknowledged that some of the demo devices had “third-party parts.”
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Chips & Processors
1.   Qualcomm Debuts New Snapdragons
2.   Samsung Touts Graphene Breakthrough
3.   Nvidia Launches New Products
4.   Intel Acquires Basis Science
5.   Intel Aims To 'Reinvent the Desktop'


advertisement
New Approach to Chip Design Found
Could soon yield light-speed computing.
Average Rating:
Samsung Touts Graphene Breakthrough
For stronger, thinner, flexible devices.
Average Rating:
Qualcomm Debuts New Snapdragons
Says fastest mobile chips ever.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Tips To Defeat the Heartbleed Bug
Heartbleed headlines continue as IT admins scramble for answers no one has. Early reports of stolen personal data, including 900 social insurance numbers in Canada, are starting to trickle in.
 
NSC Backs Disclosing Software Vulnerabilities
Disclosing vulnerabilities in commercial and open source software is in the national interest and shouldn't be withheld unless there is a clear need, says the National Security Council.
 
Heartbleed Flaw Affects Hardware, Too
It appears the Heartbleed security bug affects not just Web sites, but also the networking equipment that connects businesses and homes to the Net, including Cisco and Juniper's equipment.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Is Amazon Launching a 3D Smartphone?
Once known for selling books on an e-commerce platform, Amazon is now a bona fide hardware maker -- and it's reportedly rolling out an innovative smartphone with a 3D screen.
 
Review: S5 Features Useful, Less About Gimmicks
There's a lot to like about Samsung's new Galaxy S5 smartphone -- among them, its relative lack of features. Samsung chose to focus on features people might actually want, not gimmicks.
 
Analyst: Samsung Galaxy S5 Won't Sway iPhone Lovers
The Samsung Galaxy S5 hits store shelves on Friday and the reviews are starting to pour in. The question is: Can the latest in the Galaxy line grab more market share from Apple’s iPhone?
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.