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Intel to slash over 5,000 jobs following 2013 revenue slump

The chip maker will cut its global workforce by five percent
Mon Jan 20 2014, 10:33
Intel Haswell 4th generation Core i5

CHIPMAKER Intel will slash its workforce by five percent following a disappointing earnings announcement last week, which showed a dip in revenues for 2013.

The chip giant told Reuters on Friday that it will cut its global workforce of 107,000 by about five percent, which will mean that about 5,300 jobs will be lost at the company.

"This is part of aligning our human resources to meet business needs," Intel spokesman Chris Kraeuter told the news agency.

The job reductions might include retirements, voluntary programmes and other options, Kraeuter said, adding that the firm's annual workforce attrition is usually about four percent worldwide.

Intel posted a one percent decline in revenue for 2013 last week due to the flagging PC market, announcing total revenue of $52.7bn for 2013, one percent less than the $53.3bn it posted in 2012.

Rather tellingly, revenues at Intel's desktop division suffered a larger slump of four percent in 2013 compared to a year ago. Intel also turned a net profit of $9.6bn for the year, down by 13 percent from $11bn in 2012.

Evidently, the company's overall decline in revenue is down to the struggling PC market that saw poor sales of desktop and laptop PCs last year.

PC sales have fallen for six quarters in a row, hurt by the growing popularity of tablets and smartphones.

Analyst outfit Gartner revealed in its fourth quarter 2013 preliminary worldwide PC report last week that a total of 316 million PCs were shipped 2013, down 10 percent from the same quarter the previous year.

Kraeuter wouldn't say whether the job cuts have been announced internally yet. µ

 

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