What Job Losses At Intel Corporation (NASDAQ:INTC) Mean?
Intel Corporation (NASDAQ:INTC) recently reported their fourth quarter results for the year 2013 and also the flat projected revenue for the year 2014. The financial prospects for this giant do not paint a good picture at all as the company is looking at job cuts in excess of 5000. This would mean that Intel will be cutting down on its work force by as much as 5% this year.
The company said in an announcement that the cutback in the workforce would not mean that people would actually lose their jobs but instead the company would offer buyouts, attrition and early retirement offers for employees.
Intel expects that they will not gain much this year despite many projections which say that Intel will gain at least 1.5% revenue this year. This is more so unlikely because the company has gradually lost out on annual revenue from $12.9 billion in 2011 to $9.6 billion in 2013. The Q4 results showed that the company posted a net profit of 51 cents per share to close out at $2.63 billion which was a small rise in the profit from $2.47 billion in the same quarter last year. Revenues also rose up but only by a small fraction.
Since 2006 the Intel Corporation has been on a restructuring plan however the impetus of the plan has been brought down as the company is now more focused on smartphones and tablets among other gadgets.
At the last day of trading the stock for Intel Corporation closed at $25.85 which was a fall of around 2.6% for the day. The stock for Intel was at its peak in May 2012 at $29.27 but has since then steadily declined registering a decline of around 12%. Q4-2013 was encouraging for Intel but the future seems uncertain and only time will tell how this computer giant will fare this year.