Intel announced that it is expecting a decline in its workforce this year due to their 4th quarter earnings report. The world’s largest chip manufacturer said Thursday that it saw signs that the PC market was stabilizing, they announced that 4th quarter profit was up 6 percent year over year, to $2.6 billion, while revenue increased 3 percent to $13.8 billion.
Intel stated that it had higher PC Client Group revenue, but sales were hurt by slower growth in the Data Center Group.
The slump in the PC market caused a loss in revenue last year for Intel, annual revenue declined 1 percent to $52.7 billion, while net income dropped 13 percent to $9.6 billion.
The high adoption rate of tablets has been a major concern for Intel, despite their efforts the chips being used in tablets have been dominated by Samsung and ARM.
“Intel will be aligning resources to meet the needs of the business this year, this will include targeted workforce reduction in addition to realignment of resources” according to a company statement. A 5 percent decline in personnel will mean a reduction of almost 11,000 employees this year as Intel looks to realign themselves and compete in the evolving tablet market.
Written by: Sam Watkinson