Intel to cut its workforce by five percent by end of 2014

Chipmaker Intel has announced plans to reduce its current workforce by about five percent by the end of 2014 as the company tries to change some of its business practices in the face of falling PC shipments.

Reuters quotes Intel company spokesperson Chris Kraeuter as saying the decisions were "part of aligning our human resources to meet business needs." Intel currently has about 108,000 employees which means that by the end of 2014 over 5,000 people won't be working there anymore. Some of those staff members will depart due to early retirement and attrition, according to Kraeuter.

The news comes one day after Intel released its latest quarterly financial numbers, when it revealed that it had $13.8 billion in revenue for the fourth quarter of 2013, and net income of $2.6 billion for the quarter, which was slightly below analyst expectations. PC chip revenue for the fourth quarter was flat compared to a year ago.

Earlier this week, Intel announced that it would not open a new processor factory in Arizona as previously planned in favor of upgrading the three other factories on the same site. The vacant building will be used at some point to make future technology products.

Source: Reuters | Intel image via Shutterstock

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