Chipmaker Intel is cutting more than 5,000 jobs, or about five percent of its workforce. That says the chip company a day after the announcement of the financial figures. The reorganization is probably related to the shrinking PC market.
Intel employs 107,000 people worldwide, but more than 5,000 of those will have to leave in the near future, Intel told Reuters. “This is done to align our human resources with our business needs,” a spokesperson told the news agency. The layoffs are a result of Intel’s disappointing financial results due to the shrinking PC market.
In the coming years, Intel wants to position itself in the mobile market, which has so far been dominated by competitor ARM. The chipmaker has been working on mobile processors for several years, but so far few smartphones have appeared with Intel processors. The best known is probably the Motorola Razr I from 2012, but no Motorola smartphones with Intel processors have appeared since then. Samsung did use a baseband from Intel in its Galaxy Tab 3 10 “.
According to Intel, the number of forced redundancies during the reorganization will probably remain limited: four percent of the employees leave every year, the chipmaker claims, due to pensions and people who find another job.