Intel posts record revenue, lays off thousands

Author: Phil Cogar
Published: 18th October 2007
Comments (16) Stumble
Intel posts record revenue, lays off thousands

Intel plans to layoff more then 2,000 members of its workforce before the end of the year.

Intel Corporation has been sweeping away the competition over the past year. Since Core2Duo launched, many enthusiasts and general consumers alike have stuck to the Intel brand of processors - so when Intel posted a record third-quarter revenue, it came as no surprise. What did come as a surprise, however, was when the company announced that it planned to lay off 2,000 people.

For the third-quarter of 2007, Intel has posted a strong £4.94 billion revenue that is up sixteen percent from the 2007 second-quarter and up fifteen percent from the same time last year. The operating income for the company is up to almost £1.1 billion while the net income came in at £929 million. In layman's terms, it means that Intel has made fistfulls of cash during the course of this year.

"A combination of great products, strong and growing worldwide demand, and operational efficiency from our ongoing restructuring efforts led to record third-quarter revenue and a 64-percent year-over-year gain in operating income," said Paul Otellini, Intel President and CEO. "Looking forward, we see each of these elements continuing to improve into the fourth quarter. We are very pleased with the results and optimistic about our business."

In order to shave over £1.5 billion from current operating costs, chief financial officer Andy Bryant announced that Intel would layoff over 2,000 jobs before the end of the year. The move comes after a decisions to reduce the workforce by more than 16,000 people last year.

It's quite surprising that Intel would continue on with such massive restructuring efforts even after posting record revenues all year long. Of course they're in the business to make money, so maybe it isn't quite so surprising after all. With Penryn's launch of the horizon, Intel's fourth-quarter revenue will surely set another new record for the company - but that's one we'll have to wait until next year to find out.

Do you think that you might want to sink a few dollars or pounds into Intel's stock soon or will the company fail to meet its expected £5.13 billion fourth-quarter revenue? Leave your thoughts over in the forums.
Quote BioSniper 18th October 2007, 13:51
fixed, thanks! -- Da Dego
Quote proxess 18th October 2007, 14:01
unemployment is going to skyrocket again. oh and also... that picture... intergalactic planetary planetary intergalactic!!!!!
Quote inflatable 18th October 2007, 14:47
That's how things go in our capitalistic world.. Only a relative very small ammount of people gets richer and richer (shareholders and top of management), while most "normal" people are just "used" to make the money, and when they're not needed anymore are simply "laid off" even if the company still makes plenty of profit.. Huge buisinesses like this only exists to make as much money as possible, not to create jobs or usefull products.. Those 2 things are only means to make money, there is no real social phylosophy behind it whatsoever..

Overhere in the Netherlands, our biggest national bank has been sold last week at the cost of thousands of jobs aswell.. The CEO was very sorry to see the bank go, and said that made him quit his job as CEO.. In the meantime got €26.000.000.-- (over 36 million USD) from the deal on his personal bankaccount.. So yeah I really believe him he was truely sorry the bank got sold and he had to quit his job as CEO..

Life is a race towards the top of the social piramide.. Very few will make it to the top, while most will stay somewhere in the middle and bottom.. I hope those 2000 laid off by Intel will find other good jobs soon..
Quote Drexial 18th October 2007, 15:42
the job cuts are to protect profitability. they are making up revinue, investors like to see lay offs cause thats less spending in the budget.

lets say those workers (at best) made $10 an hour thats $20,000 an hour X 40 thats $800,000 a week X 52 weeks. thats 41.6 million they just saved intel in spending a year. even if they are only getitng like $5 an hour thats still $21 million. That means mroe money for investers. and intels stocks look to go up in value.
Quote Paradigm Shifter 18th October 2007, 16:00
Makes loads of money... lay off staff. Yeah, that makes sense. :|
Quote DXR_13KE 18th October 2007, 22:24
that makes absolutely no sense.... but thats me....
Quote The_Beast 18th October 2007, 22:31
there stock has been going up and up very steadily (there was a drop one day but not much)
Quote tuteja1986 19th October 2007, 06:28
The_Beast , the stock hasn't moved. it still the same because i own intel stock and i ain't seeing any returns like i am with my apple stock which i bought at $90.07 and its $173 now !!
Quote Henk 19th October 2007, 07:29
Well on the bright side we might see more pricedrops in the future
Quote outlawaol 19th October 2007, 08:01
Sounds about right for a mega corporation. I helped in that profit!

Its sad to see companies doing this kinda thing, as their workforce is what makes them their cash. Seems real selfish to report record sales, then dump a whole lotta people.

All well, go into business for your self! Thats where the real cash is.

:)
Quote Nictron 19th October 2007, 11:29
It is quite sad too read about something like this but we must understand that most if not almost all will find a place for their skills somewhere else in the market, some might even join the competition and add to that company so that they compete better in the market.

We always get emotional in these situations but we must apply more thought to the matter. No one likes losing a job but it is still your choice if you are going to lie down and die or just continue forward.

That was my 2c.
Quote f00dl3 19th October 2007, 12:38
Layoffs always improve profit and stock. Layoffs are good for the companies. Bad for employees - but since when do employees matter to American companies?
Quote kenco_uk 19th October 2007, 12:47
Caption for the picture used, "Who ate all the chips?"
Quote WarMachine 19th October 2007, 23:10
Quote:
Originally Posted by Drexial

lets say those workers (at best) made $10 an hour thats $20,000 an hour X 40 thats $800,000 a week X 52 weeks. thats 41.6 million they just saved intel in spending a year. even if they are only getitng like $5 an hour thats still $21 million. That means mroe money for investers. and intels stocks look to go up in value.

Wow! They saved (your estimate of) $41.6 MILLION (USD) this YEAR by laying off 2000 people, after bringing in $7.06 BILLION in the last 3 MONTHS.

For those that don't want to do the math, they saved .14% of their quarterly earnings by putting 2000 people out of work.

Yeah, they had to do something to protect profits... that's almost 2/10's of a percent there.
Quote completemadness 21st October 2007, 18:24
If you have employees you don't need, your stupid not to lay them off

But setting targets for people to be fired is a bit stupid, then again, its good motivation, as bad workers will work a lot harder as their jobs are at risk ....
Quote rhuitron 29th October 2007, 19:58
I Love Intel. If Intel Were a supper ugly, supper fatty girl, I would marry her just because.
And make many love children together.

But this is Gay. I am ashamed to say I like Intel sooo much.
It really does suck and I am really lost here.
Kinda makes me wanna say I don't like them as much.
:(

No. I like them, but they lost a lot of my respect.

Why you greedy *******s?
:'( :(
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