Intel to Lay off 5,000 But Insists It’s Not Firing

Updated: January 23, 2014

Intel has reported that they plan to layoff over 5,000 people between now and the end of 2014. This 5,000 number consists of about 5% of the company’s workforce.

Despite the layoff, the American chipmaker has posted considerably strong numbers for its latest quarter. On top of this, Intel has claimed that the PC market has stabilized. Its revenue rose 3% to $13.8 billion and net income was up 6% to $2.6 billion.

Intel Spokesman Chris Kraeuteur spoke to CNNMoney and said, “This is not a layoff. It’s not a giant, one time action. This is a target employment rate for the end of the year.” However, the workers leaving may view it bit differently.

The timing of the layoff announcement is a bit odd if you explore the context of comments by Intel CEO Brian Krzanich as part of Intel’s earnings press release. Krzanich stated, “We had a solid fourth quarter with signs of stabilization in the PC segment and financial growth from a year ago.” Data from Gartner IDC show quite the contrary, with declining PC shipments for seven consecutive quarters.

Is Intel doing okay? Let us know what you think in the comments below!

Source: 247Wallst

Tom Webb

If it quacks like a duck, fly’s like a duck and walks like a duck. Do not go hunting for swans. 5000 lost jobs is not a small workforce. My hope is that these “lay-offs” won’t effect the production line of quality products.
The Rational Idea

There is more information you need to make a proper judgement. Such as what were previous layoffs like? Has there every been one this size? And from what sector are these layoffs occurring?

There is no doubt that production and innovation has become more efficient over the years and if Intel decides they don’t need that 5%, who can blame them? I don’t believe a company is required to keep workers based on apathy. Although I do feel for the people being fired, they have experience at a big name giant and will have no problem finding a new job.