Intel begins lay offs

Great-Depression-Unemployment-Line-Intel CEO Brian Krzanich has confirmed that the chipmaker is laying off people.

In an internal memo Krazanich said that Intel was implementing “headcount reductions” which we guess will involve all those Intel employees who have a head.

“With today’s incredible pace of innovation and change, companies consistently need the flexibility to invest in skills and experience required in new growth areas,” he said. Quite how that sentence is connected to “clean out your desk we are trying to save money,” is not clear.

Krzanich didn’t specify the exact number of layoffs, but said “no more than a few hundred employees in any given site or geography” will be affected by this restructuring plan.

He also reiterated Intel’s plan to keep roughly the same number of employees by the end of the year as it started in 2015. Intel had 106,700 employees at the end of 2014, with about half of them located in the US.

It appears this is all about losing money because Intel’s core PC business has been falling like a free fall team of parachuting elephants and its mobile group lost more than $4 billion last year and could not even find it down the back of the sofa.

Intel combined the PC and mobile groups under a single division called Client Computing Group last quarter, which accounted for more than 58 per cent of total revenue. As a result, Intel’s data centre group is now the most profitable unit within the company.

It is not the first time Intel had a huge workforce restructuring. Last year, Intel said in its annual report that “restructuring actions that were approved in 2014 impacted approximately 3,700 employees.”