Intel To Cut More Than 5,000 Jobs

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 IntelEUs projection of virtually no revenue growth this year, and will be accompanied by the companyEUs re-orientation toward mobile and other markets.

A company spokesperson told news media that the move is EUpart of aligning our human resources to meet business needs.EU 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 IntelEUs chip sales for PCs are beginning to even out, server chip sales have been disappointing.

EUOverestimated Rate of RecoveryEU

CEO Brian Krzanich told investors and analysts that Intel had EUoverestimated the rate of recovery among corporate buyers,EU and added that 2014 was now looking like a slower recovery for...

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