Exclusive: Intel says to reduce global workforce by 5 percent in 2014

Reuters News
Posted: Jan 17, 2014 3:12 PM

By Noel Randewich

SAN FRANCISCO (Reuters) - Intel Corp plans to reduce its global workforce of 107,000 by about 5 percent this year as the chipmaker, struggling with falling personal-computer sales, reprioritizes toward faster-growing areas, a company spokesman said on Friday.

The announcement comes a day after Intel posted a fourth-quarter earnings report that did little to dispel concerns about a slowing PC industry.

"This is part of aligning our human resources to meet business needs," spokesman Chris Kraeuter told Reuters on Friday.

On a conference call with analysts on Thursday after the earnings release, Chief Financial Officer Stacy Smith alluded to a reduction in employment this year and said that Intel would increase investments in areas like data center, low-power chips and tablets.

Intel dominates the PC chip industry, but it has been slow to adapt its processors for smartphones and tablets, markets now dominated by rivals like Qualcomm Inc and Samsung Electronics Co Ltd.

Shares of Intel were down 3.45 percent at $25.62.

(Reporting by Noel Randewich)

(This story was refiled to correct the last name of CFO in the fourth paragraph)