Intel to reduce global workforce by five percent in 2014
By Noel Randewich
SAN FRANCISCO (Reuters) - Intel Corp plans to reduce its global workforce of 107,000 by about 5 percent this year as the chipmaker, struggling with falling personal-computer sales, shifts focus to faster-growing areas, a company spokesman said on Friday.
The announcement, equivalent to over 5,000 positions, comes a day after Intel posted a fourth-quarter earnings report that did little to dispel concerns about a slowing PC industry.
"This is part of aligning our human resources to meet business needs," spokesman Chris Kraeuter said.
The job reductions may include retirements, voluntary programs and other options, Kraeuter said, adding that Intel's typical annual attrition worldwide is about 4 percent.
He declined to say whether details of the changes had been announced internally.
On a conference call with analysts on Thursday after the earnings release, Chief Financial Officer Stacy Smith alluded to a reduction in employment this year and said that Intel would increase investments in areas such as data center technology, low-power chips and tablets.
Intel dominates the PC chip industry, but it has been slow to adapt its processors for smartphones and tablets, markets now dominated by rivals such as Qualcomm Inc and Samsung Electronics Co Ltd.
"If they've got a bunch or resources in a market that may not be dead but is not growing a ton, it probably makes sense to reprioritize those investments in areas where there are fast-growing markets," said Bernstein analyst Stacy Rasgon. Continued...