Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News
    • PC Hardware

    Intel Cutting Jobs in Wake of Reduced Sales Expectations

    Written by

    Jeff Burt
    Published June 18, 2015
    Share
    Facebook
    Twitter
    Linkedin

      eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

      Intel, hurt by the continued stagnation in the global PC market, reportedly is cutting hundreds of jobs at different sites around the world.

      Rumors of the layoffs have circulated for more than a week, but in an internal memo to employees June 16 that was obtained and published by The Oregonian news site, Intel CEO Brian Krzanich confirmed the reports. Decrying leaks to the press regarding the job cuts, Krzanich admitted that some employees were being laid off and added that “with today’s incredible pace of innovation and change, companies consistently need the flexibility to invest in skills and experience required in new growth areas.”

      He said the workforce reductions were based on several factors, including the need to lessen investment in areas of the business that are falling in importance, as well as redundancies and inefficiencies, and job performance. The CEO didn’t specify how many jobs would be cut though he said it would be “generally no more than a few hundred employees in any given site or geography.”

      Krzanich also said that he expected Intel—which has more than 105,000 employees—would end 2015 with the same number it started the year.

      The job cuts come after Intel chalked up record revenues in 2014 that were partly the result of a stronger worldwide PC market, which had seen significant declines in sales between 2011 and 2013 as more business and consumer dollars went to tablets. The declines eased in 2014, due in large part to Microsoft’s decision to end support of Windows XP, forcing businesses to migrate to Windows 7 or 8.

      However, slow PC sales in the first three months of this year forced Intel to reduce its revenue expectations for the year, from about a 5 percent increase to essentially flat. Intel executives, in a conference call in April to discuss first-quarter financial numbers, also said that they were planning to cut about $300 million from the $20 billion they had set aside for R&D and administrative costs.

      First-quarter revenue hit $12.8 billion, which was flat from the same period last year. A key driver was the softening demand for PCs, and Intel’s Client Computing Group still accounts for more than half the company’s sales. Revenue for the client group was $7.4 billion, an 8 percent drop from the first quarter of 2014. Intel executives in April said they were confident that as the year rolls on, gains in the data center, Internet of things (IoT) and memory businesses will offset PC losses.

      In his internal memo, Krzanich said he wanted to be as transparent as possible with employees regarding Intel’s plans, but didn’t want to make a company-wide announcement about the layoffs out of respect for those who are losing their jobs. He said the reports in the media made such an announcement necessary.

      “For the vast majority of Intel employees, this has no impact,” Krzanich wrote. “The most important people we need to communicate with are those affected by these actions. This is why apparent ‘leaks’ of internal documents disappoint me so deeply.”

      He also noted that Intel executives will “continue to look at our organization and make the changes necessary to fund our growth areas. This will include rigorous performance management, consistent with how we operate at Intel. … I don’t plan to communicate broadly each time we employ these strategic actions. My commitment to you is that as we enter each year we’ll give you the general direction on head count for the company, and if that direction changes materially, we will update everyone.”

      Jeff Burt
      Jeff Burt
      Jeffrey Burt has been with eWEEK since 2000, covering an array of areas that includes servers, networking, PCs, processors, converged infrastructure, unified communications and the Internet of things.

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×