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 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 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.