The chipmaker will reduce its workforce by 5 percent in the shadow of a shrinking PC market. January 17, 2014 3:20 PM PST Intel's Fab 32 chip factory in Chandler, Ariz., opened in 2007. (Credit: Intel) Intel plans to cut about 5 percent of its global workforce, the company said in a statement Friday. That comes to roughly 5,000 out of a total workforce of 107,000, Reuters said. Though Intel reported a rise in net income in Thursday's fourth-quarter earnings report, there were also some red flags. CEO Brian Krzanich said the enterprise, aka corporate, market was weak. Related stories Intel used ARM chips in wearables demos at CES Intel's Bay Trail chip arriving on Android tablets in Q2 Intel CEO talks delayed factory, 'Broadwell' production start "Enterprise...fell short of our expectations for the fourth quarter and the year as we overestimated the rate of recovery among corporate buyers," he said during the earnings conference call. And when addressing the delay in starting the Fab 42 plant in Arizona, Krzanich also had some less-than-encouraging remarks about PCs. "We have to start construction projects three years roughly in advance. They're very complex. If you go back three years ago, our view of the PC industry, PC growth was much more robust than what has played out," Krzanich said. And research firm Gartner reported a slowing PC market in the fourth quarter earlier this month.
The chipmaker will reduce its workforce by 5 percent in the shadow of a shrinking PC market.
Intel's Fab 32 chip factory in Chandler, Ariz., opened in 2007.
(Credit: Intel)
Intel plans to cut about 5 percent of its global workforce, the company said in a statement Friday.
That comes to roughly 5,000 out of a total workforce of 107,000, Reuters said.
Though Intel reported a rise in net income in Thursday's fourth-quarter earnings report, there were also some red flags.
CEO Brian Krzanich said the enterprise, aka corporate, market was weak.
Related stories
- Intel used ARM chips in wearables demos at CES
- Intel's Bay Trail chip arriving on Android tablets in Q2
- Intel CEO talks delayed factory, 'Broadwell' production start
"Enterprise...fell short of our expectations for the fourth quarter and the year as we overestimated the rate of recovery among corporate buyers," he said during the earnings conference call.
And when addressing the delay in starting the Fab 42 plant in Arizona, Krzanich also had some less-than-encouraging remarks about PCs.
"We have to start construction projects three years roughly in advance. They're very complex. If you go back three years ago, our view of the PC industry, PC growth was much more robust than what has played out," Krzanich said.
And research firm Gartner reported a slowing PC market in the fourth quarter earlier this month.
