Intel confirms its reducing staff by 5,000

As layoffs go, this one from Intel will not be as harsh as others in the IT sector.

Intel Corp. confirmed that it plans to reduce its workforce by 5,000 jobs in a year’s time.

Most of these jobs will be eliminated by attrition, buyouts and people taking early retirement.

Despite reporting revenue of $52.7 billion, net income of $9.6 billion and more than $21 billion in cash from operations, the chip making giant said the profits dropped significantly in the PC space.

An Intel spokesperson added the job reduction will not include outright layoffs. The company is currently working to match employees with the right opportunities inside Intel. The company currently employs approximately 108,000 workers.

The company used $2.1 billion to repurchase 94 million shares of stock and paid dividends of $1.1 billion just in the last quarter.
“We had a solid fourth quarter with signs of stabilization in the PC segment and financial growth from a year ago,” said Intel CEO Brian Krzanich.

“We’ve built a strong foundation for our business by bringing innovation to the market more quickly across a wide range of computing platforms. For example, at CES, we demonstrated multiple devices that weren’t on our roadmap six months ago.”

Recently the company announced Intel-based Shopping Anywhere initiative where consumers can buy products while watching a television program. Called the Intel Retail Client Manager, built with technology from NCR and ACTV8.ME people with a tablet or smartphone, can identify the clothing an actor or actress is wearing in an episode and receive special offers, play games to earn digital currency, or purchase the outfit instantly and have it delivered directly to their door.

Intel’s Core i7-based MemoryMirror, for example, is a full-length, digital mirror that enables shoppers to virtually try on multiple outfits, and view and compare previous looks on the mirror or via smartphone or tablet. The MemoryMirror uses Intel integrated graphics technology to create avatars of the shopper wearing various clothing that can be shared with friends to solicit feedback or viewed instantly to make an immediate in-store purchase.

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