Intel confirms layoffs; over 5K workers to be affected


Intel (INTC) confirms a Reuters report stating it plans to cut headcount by ~5% this year. No details have been given about which business units or facilities will be hit.

With Intel currently having a headcount of 107K (up from 105K a year ago), over 5K workers are set to be affected by the restructuring.

Context: Intel is coming off a Q4 in which its opex rose 8% Y/Y (thanks in large part to an R&D spending ramp), and its revenue only grew 3%. The company is also guiding for flat 2014 revenue/EPS growth, and for its gross margin to drop 100-500 bps Q/Q in seasonally weak Q1. Moreover, excess capacity has led Intel to stall the opening of an Arizona fab.

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Comments (9)
  • techy46
    , contributor
    Comments (11501) | Send Message
     
    News - The 450mm wafer size promises to be more cost efficient by reducing manufacturing costs and letting Intel produce greater quantities of chips that have lower yields (the amount of working chips produced).

     

    HR Memo - Get rid of 5% of our production workforce by June, 2014
    17 Jan 2014, 05:56 PM Reply Like
  • 8001381
    , contributor
    Comments (20) | Send Message
     
    "HR Memo - Get rid of 5% of our production workforce by June 2014"

     

    Which sites? What countries?
    17 Jan 2014, 06:16 PM Reply Like
  • Badonkadonk
    , contributor
    Comments (302) | Send Message
     
    I think you meant higher yield / lower DPU. Not much economic sense if you build more dice per wafer but also have higher defect rates.
    Though if you have 2x the dice and only 1.5x the DPU you do come out ahead...
    17 Jan 2014, 09:45 PM Reply Like
  • trader_xx
    , contributor
    Comments (1459) | Send Message
     
    Don't hold your breath on 450mm... INTC doesn't need to worry about this for a while now...Especially with mothballed fabs just sitting there collecting dust.

     

    HR Memo - Getting rid of 5% of production workforce needs to start with the bloated management ranks, not the poor folks in production...
    18 Jan 2014, 09:32 AM Reply Like
  • HKhoder
    , contributor
    Comments (5) | Send Message
     
    Let me state that I am Long INTC since 2009 when it traded between 17 and 21. That means my cost basis is about 18 excluding dividends)... Lets also be clear that INTC is not an AAPL or an ALU where it will either double or triple in one year or sink by 50 - 80% in a year. INTEL IS INTEL. That said, I believe if you have a low tolerance for risk and an objective of steady growth (3-10%) per year for the next 4-5 years,,, with the potential of 30-50% growth over the next 24 months if certain catalysts merge (Mobil traction, Internet of Everything which I predicted in 2012 in an SA comment, foundry business) then INTC is a solid strategy for the foreseeable future..

     

    OK.. now for the numbers for each year - (in 2014 - $23-$28) - (in 2015 - $27-$31) - (in 2016 - $28 - $25) all exclusive of dividends,

     

    I am sure there are other firms that fit this mold.. and some even better... but for me, INTC represents a core holding along with PFE, GE, AA, TWX and a speculative stock ALU which has performed exceptionally well since December 2012 when I took a large position.

     

    Lastly, I was hoping to see a collaboration between ALU and INTC as it relates to infrastructure, IP, Modems, transmission, routers, etc... I always believed that if the end points and the linkage connections were tightly integrated, then you would have a solution.. (ex security embedded In the silicon vs external software).. Its common sense.. not science.. its just plain old common sense... INTC could have purchased ALU outright last year for less than 4B.. Too late now.
    18 Jan 2014, 09:01 AM Reply Like
  • DanoX
    , contributor
    Comments (3506) | Send Message
     
    The long slow decline continues.
    18 Jan 2014, 03:54 PM Reply Like
  • sbrncra
    , contributor
    Comments (258) | Send Message
     
    read the alpha alcoa alumininum breaking news report...sounds like the events going on here!

     

    alcoa up 12% after investors finally realized news wasn't so bad and cramer jumped on board!

     

    cramer recently owned INTC...i do believe
    19 Jan 2014, 02:35 AM Reply Like
  • scabalqu
    , contributor
    Comments (264) | Send Message
     
    cramer owned INTC? more reason to sell INTC.

     

    Hahaha!
    20 Jan 2014, 12:56 AM Reply Like
  • scabalqu
    , contributor
    Comments (264) | Send Message
     
    sell INTC. And fire the CEO.
    20 Jan 2014, 12:53 AM Reply Like
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