Intel Confirms Plans to Cut 5,000 Jobs
After reporting better-than-expected quarterly results on Thursday, an Intel (NASDAQ:INTC) spokesperson confirmed to Reuters on Friday that the company plans to reduce its workforce by 5 percent, which accounts for 5,000 jobs. The spokesperson didn’t give a time frame for when the cuts would occur, but did say that they could happen through layoffs, attrition, and other means.
The job cuts were alluded to during the company’s earnings call on Thursday, the Wall Street Journal reports, although a specific count of the number of jobs Intel planned to eliminate wasn’t given at that time. “We’ll be bring employment down over the course of the year,” said Stacy Smith, Intel’s chief financial officer, during the call, per the Journal. “So even beyond the headline number there’s going be a significant shift in investment over the course of the year.”
In the final quarter of 2013, profits at the Santa Clara, California-based chipmaker rose. The company’s stronger results and industry data both suggest the struggling personal computer market has begun to stabilize. A solid quarter for Intel meant that the PC market was showing “signs of stabilization” and that the company had experienced “financial growth from a year ago,” according to CEO Brian Krzanich. For the fourth-quarter, Intel’s financial growth amounted to a 6.4 percent increase in net income. Revenue came in slightly above estimates, while income fell slightly below.