Intel posts record revenue, lays off thousands

Written by Phil Cogar

October 18, 2007 | 13:36

Tags: #fire #layoff #profit #reduce #revenue #workforce

Companies: #intel

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.
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