Intel confirms it is slashing workforce by 5 percent this year

Intel confirms it is slashing workforce by 5 percent this year

Summary: UPDATED: Intel has some big plans for 2014. Unfortunately, one of them concerns layoffs.

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It's been a mixed week for Intel, and it looks like the processor giant will be ending it on a low note.

Reuters is reporting that the Santa Clara, Calif.-headquartered company will be reducing its workforce by roughly five percent this year.

Intel's most recent annual report, for 2012, states that Intel's workforce stands at approximately 105,000. The Reuters report cites that this figure is now closer to 107,000.

Intel leadership was already on the defensive on Thursday following a mixed fourth quarter earnings report.

CEO Brian Krzanich admitted during the conference call that enterprise figures didn't live up to expectations because Intel "overestimated the rate of recovery among corporate buyers."

He also warned analysts and investors to expect "a slower recovery in enterprise over the course of 2014."

The processor giant reported earnings of 51 cents a share on revenue of $13.8 billion. But Wall Street was looking for earnings of 52 cents a share on revenue of $13.72 billion. Analysts had been particularly counting on strong data center results.

As a result, Intel shares took a dip in after-hours trading.

But Krzanich remained optimistic about 2014, particularly keen on plans that aim to grow Intel's tablet volume from the 10 million mark achieved in 2013 to more than 40 million by the end of 2014.

ZDNet reached out to Intel for comment. We will update this post once we hear back.

UPDATE: Intel spokesperson Chris Kraeuter confirmed to ZDNet that Intel "employment will come down by about five percent this year."

"I can confirm that we're making critical decisions to align our resources to meet the needs of our business," Kraeuter continued.

However, Kraeuter refused to comment about which departments and geographical regions would be affected, only to note that "we re-prioritized some activities" and that the layoffs will progress over the course of 2014.

Kraeuter later clarified that the reduction could also include "redeployments, voluntary programs, retirements, and through attrition" versus layoffs entirely.

Topics: IT Employment, Intel, Processors, PCs, Tech Industry

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7 comments
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  • Awesome, I love this inflationary jobless "recovery"

    Wow, recovery rules. Federal Reserve printing money, jobs being cut, labor participation rate lowest in 30 years yet we have 90 million more people - I love it! More please!
    mickrussom@...
    • Liberalism run amuck

      It is liberalism run amuck. It is incredible! Liberal behave like children, acting completely unconcerned about the long term financial impact of their actions. They heap on regulations and costs to small businesses repeatedly. Then there is coming up, the mother of all regulations and costs - Obamacare. I don't know how the millennials are going to handle things. Entitlement programs are becoming ever more burdensome, and Democrats keep making it harder for businesses to grow and generate jobs and taxes to cover the tab, all the while exacerbating things by spending money like there is no tomorrow.

      I put a lot of blame on conservatives, because liberals make sure that they stack positions where they can continually promulgate the public with their dogma - such as media, universities, schools - and conservatives have not responded in kind. So then millennials have little idea about conservative principles beyond what they hear through the liberal media. It is incredible! Conservatives have all this money, and they don't do anything to address the above situation.
      P. Douglas
      • Blame "republicans", not conservatives.

        Republicans are the party of "the deal" or "compromise". Conservatives are more prone to holding the line, and not compromising away the principles in the constitution, and are the party of the "free-market" system. Republicans, in general, have compromised the country in far too many deals, to the point where the country has created a huge dependent society.
        adornoe
        • It is conservatives who need to take action

          Conservatives need to be more activist, and invest heavily in media to get their ideas out. Tea Party members could do stuff like release video streaming apps on Windows, iOs, and Android. If MS allowed third parties to produce apps on Xbox Live, that are accessible on Xbox One, Xbox 360, Windows 8.x, and WP 8, Tea Party members could make businesses out of their efforts, and try make money in the process. It would be great to see organizations like the Weekly Standard, put out apps and emagazines, that both persuade people, and become financially successful. Also, I'm tired of conservatives griping about the liberal media like a broken record, and not try and do something about it.
          P. Douglas
          • Liberals do control between 80-90% of the media, so, it's a very uphill

            climb.

            However, if you think we conservatives need to do more in media, let's get moving. I have ideas, if you have the talent for internet development.
            adornoe
  • Analysts

    Analysts are the problem with Wall Street. Forget them
    Don Dureau
    • That's too simplistic. Elaborate.

      n/t
      adornoe