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Intel announces job cuts

Intel announces job cuts

Intel's Brian Krzanich spoke of a 'solid' fourth quarter for the company, but that hasn't stopped it announcing more than five thousand job losses.

Intel's claims of 'solid' financial results have been followed with the stark reality of the slowdown in traditional PC sales: the company is to lay off more than five thousand staff in order to cut costs.

Intel's most recent financial results were claimed by chief executive Brian Krzanich as 'solid' amid evidence that the PC market slump may finally be bottoming out. A serious shrinkage of its sales into said market were countered by an increase in revenue from the data centre industry - but that, it appears, is not enough to keep the company on an even keel. Accordingly, Intel has announced a round of lay-offs that will see more than five thousand staff - around five per cent of the company's total headcount - let go.

'Intel will be aligning resources to meet the needs of the business this year,' the company's official statement reads. 'This will include targeted workforce reduction in addition to realignment of resources.' Currently, the company employs around 108,000 world-wide - a figure the company is looking to reduce by five per cent, or around 5,400. This, it claims, is only one percentage point higher than its usual churn rate of four per cent - although it will likely come with an unusual hiring freeze for departments that have been specifically targeted for reduction.

The news comes as Intel hits a rough patch for publicity, having been forced to admit that several of the prototypes it unveiled at the Consumer Electronics Shows (CES) this year to demonstrate the potential of its low-power Quark x86 platform were in fact powered by ARM-based chips and the revelation that the company is subsidising its Bay Trail platform as it struggles to win market share from its rivals.

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Shirty 20th January 2014, 12:17 Quote
Quote:
Originally Posted by Article
Intel's claims of 'solid' financial results have been followed with the stark reality of its ever increasing quota of robot assembly staff: the company is to lay off more than five thousand staff in order to make space for said army of automatons.

FTFY.
MrJay 20th January 2014, 13:30 Quote
This is the next great crisis, all the manual labour tasks will soon be heavily automated.

The majority of todays jobs will simply not exist in 20 years, and you think unskilled jobs are in short supply now!

It is socially irresponsible for a company to be making record profits and still cut staff.
jrs77 20th January 2014, 13:42 Quote
Quote:
Originally Posted by MrJay
It is socially irresponsible for a company to be making record profits and still cut staff.

Capitalism does'nt care about social responsibility.
Shirty 20th January 2014, 13:44 Quote
Quote:
Originally Posted by jrs77
Capitalism does'nt care about social responsibility.

It will do eventually, when there is no market left :)

Just hordes of sentient assembly robots, plotting.
Xir 20th January 2014, 14:44 Quote
Ah... and I just sold my Intel stock.

Anyway, you wouldn't believe the amount of highly skilled (and paid) labour a high tech fab requires.
Not having people in the fab isn't per se cheaper, but it is cleaner than an army of men in bunnysuits.
Maintainence is very high.
Anfield 20th January 2014, 14:48 Quote
Quote:
Originally Posted by jrs77
Capitalism does'nt care about social responsibility.

In order to change that media should stop using the term job cuts and replace it with lost consumers to give the world a wake up call what cutting jobs really means.
MrJay 20th January 2014, 14:59 Quote
Quote:
Originally Posted by jrs77
Capitalism does'nt care about social responsibility.

/agreed

This needs to change, its a completely moronic and flawed system.
rollo 20th January 2014, 15:06 Quote
They will still be one of the top employers in the country I'd imagine. Social responsibility is hardly a problem of only tech companies.

Also no mension of how they plan to do this, could be some retirements involved. Most companies try to reduce the amount of forced reduncy bigger payouts for one. Or what country it will effect. They are after all a global company.

Business the size of intel probably loses close to 5k people in just burn rates year to year. If they are not rehiring then its a layoff only time will tell on that one.
RedFlames 20th January 2014, 15:10 Quote
Something similar happened at Canon iirc, only there a fair few people were kept on... to maintain/fix the robots that were doing their old jobs...
crudbreeder 20th January 2014, 15:50 Quote
Quote:
Originally Posted by MrJay
This is the next great crisis, all the manual labour tasks will soon be heavily automated.

The majority of todays jobs will simply not exist in 20 years, and you think unskilled jobs are in short supply now!.

This has been going on for over 250 years now, so it's hardly the "next" great crisis.
And the crisis is not that manual labour tasks are automated, that is only a good thing since most jobs that can be automated in the first place are jobs that are monotonous and dull and often hard on the workers.
The crisis is that people get unemployed and that it taks a very long time to create new industries and professions for those people.
fodder 20th January 2014, 16:20 Quote
Quote:
Originally Posted by crudbreeder
....
most jobs that can be automated in the first place are jobs that are monotonous and dull and often hard on the workers.
...

I have to disagree with this point. There are several highly skilled jobs that have been made obsolete by tech in the last 20 years. Toolmakers were once the peak of their profession, now performed by a machine and pc. Lithographers were also highly skilled tradesman, again now replaced by a pc and what is little more than a trained pigeon. Both of these examples required not only a high level of manual skill but also a high degree of mental ability.
jrs77 20th January 2014, 16:51 Quote
Quote:
Originally Posted by Anfield
In order to change that media should stop using the term job cuts and replace it with lost consumers to give the world a wake up call what cutting jobs really means.

That's exactly the problem. Unemployed people can't consume, but the whole capitalistic system is based on consuming allways a little more than you actually need.

The stockholders are the biggest problem with companies like intel, as they want higher dividends. Raising the prices of the stocks can be done in two ways, a fast one and a slow one and both options have the same result... higher net-wins.
The shareholders allmost allways go for the fast money tho and this is quickly achieved by cutting down manufacturing-costs.
The slow and more social alternative one would be to improve the products to make them more valuable and sell them at higher prices.
And the best option for the shareholders is a combination of both ofc.

Anyways... studies have shown that we could actually lay off 75% of all current workers in the world and replace them by machines, but to do this and make it work we'd need another system than capitalism. Think about StarTrek, global communism, etc...
MrJay 20th January 2014, 22:05 Quote
We have the ability to manage resources and automate essential processes leaving people to get on with actually living. But we can't because 'where is all the money going to come from'.

So long as the main goal is profit and not for the benefit of our society as a whole, the more crap like this is accepted.

You should probably ignore my rants, I'm a tad jaded, I'm under the threat of redundancy (again).

I don't want to live on this planet any more.
Bede 21st January 2014, 10:12 Quote
Well don't jump under a train then, do it at home quietly. The number of ill-informed anti-capitalist whingings you see round here is ridiculous - none of the tech we like so much would exist in your hypothetical socialist paradises.
MrJay 21st January 2014, 12:58 Quote
I don't need to worry about my well being and health as long as i have the latest tech...
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