Intel confirms layoffs; over 5K workers to be affected

|About: Intel Corporation (INTC)|By:, SA News Editor

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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