Intel To Cut Over 5,000 Jobs

intel to cut jobs
Intel Corp plans to reduce its global workforce of 107,000 by about 5 percent this year as the chipmaker, struggles with falling personal-computer sales.

The announcement that roughly translates over 5,000 positions came after Intel posted a fourth-quarter earnings report that did little to dispel concerns about a slowing PC industry.

The company’s spokesperson, Chris Kraeuter said, this is part of aligning our human resources to meet business needs.
According to him, the job reductions may include retirements, voluntary programs and other options.
The chipmaker is also not the only tech company to trim its workforce because of slowing demand for PCs since Apple’s iPad started to cut into demand for laptops in 2010.

Intel forecast March-quarter restructuring charges of $200 million, a portion of which could be earmarked for severance pay. Intel plans to subsidize its customers’ engineering and manufacturing expenses, effectively reducing its gross margins in 2014 by 1.5 percentage points.

Last September, Intel said it would close an old factory in Massachusetts, eliminating about 700 jobs.
Intel has said it plans to quadruple tablet chip volume this year to 40 million units and aggressively stake out market share ahead of future mobile chip launches.

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