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Intel may be one of the world's greatest and best-known technology companies and one of the most famous companies period, but that doesn't mean it doesn't have its less than rosy moments or years. 2013 is such an example, and 2014 might become another.
According to an Intel official who spoke to New York Times but chose to remain anonymous, the corporation will fire 5,000 people this year.
That's the equivalent of 5% of its workforce and is meant to help the company “change with the times.”
It's pretty clear at this point that this “change” of the times is in no way good, having to do with the way PCs have been losing customers.
Intel also miscalculated when it dismissed the potential of tablets and smartphones a few years back, thus giving ARM and Apple chips a nice head start there.
It's why new CEO Brian M. Krzanich (he assumed the post in mid-2013) has been in such a hurry to get Intel x86 technology inside wearable computers, connected appliances, and biometric devices.
Even if Intel CPUs do carve out a share of the tablet/phone market at this point, the stake probably won't manage to match Android on ARM, sales-wise.
And since wearables and connected appliances are in an infant stage, this is the opportune moment to do what Intel failed to do there.
PCs remain critical for Intel though, because the low-power processors that can compete in tablets, phones, and smaller gadgets are only now catching up to the others, efficiency-wise.
On the other hand, server sales did slow down in 2013, but they weren't bad per se. And since this is the second most essential business outlet of Chipzilla, we can assume it isn't about to sacrifice any resources on that front when servers are still going strong. Thus, the 5,000 layoffs are bound to affect the PC division the most.
Intel may be one of the world's greatest and best-known technology companies and one of the most famous companies period, but that doesn't mean it doesn't have its less than rosy moments or years. 2013 is such an example, and 2014 might become another.
According to an Intel official who spoke to New York Times but chose to remain anonymous, the corporation will fire 5,000 people this year.
That's the equivalent of 5% of its workforce and is meant to help the company “change with the times.”
It's pretty clear at this point that this “change” of the times is in no way good, having to do with the way PCs have been losing customers.
Intel also miscalculated when it dismissed the potential of tablets and smartphones a few years back, thus giving ARM and Apple chips a nice head start there.
It's why new CEO Brian M. Krzanich (he assumed the post in mid-2013) has been in such a hurry to get Intel x86 technology inside wearable computers, connected appliances, and biometric devices.
Even if Intel CPUs do carve out a share of the tablet/phone market at this point, the stake probably won't manage to match Android on ARM, sales-wise.
And since wearables and connected appliances are in an infant stage, this is the opportune moment to do what Intel failed to do there.
PCs remain critical for Intel though, because the low-power processors that can compete in tablets, phones, and smaller gadgets are only now catching up to the others, efficiency-wise.
On the other hand, server sales did slow down in 2013, but they weren't bad per se. And since this is the second most essential business outlet of Chipzilla, we can assume it isn't about to sacrifice any resources on that front when servers are still going strong. Thus, the 5,000 layoffs are bound to affect the PC division the most.
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