Intel To Cut About 5000 Jobs Company Wide

From reuters “Intel to reduce global workforce by five percent in 2014

Intel Corp plans to reduce its global workforce of 107,000 by about 5 percent this year as the chipmaker, struggling with falling personal-computer sales, shifts focus to faster-growing areas, a company spokesman said on Friday.

The announcement, equivalent to over 5,000 positions, comes a day after Intel posted a fourth-quarter earnings report that did little to dispel concerns about a slowing PC industry.

“This is part of aligning our human resources to meet business needs,” spokesman Chris Kraeuter told Reuters on Friday.

The job reductions may include early retirement, attrition and other options, Kraeuter added. He declined to say whether details of the changes had been announced internally.

I predict more layoffs and not just in New Mexico and it sounds like they will be in the first quarter of 2014.

In its report on Thursday, Intel forecast March-quarter restructuring charges of $200 million, a portion of which could be earmarked for severance pay.

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Ars Technica On Intel's Tanking Stock

Intel reported earnings yesterday, record earnings. Because Intel did not meet the expectations of analysts the stock is getting hammered.

Joel Hruska at Ars Technica has a great commentary on why they are expecting too much from a good thing.

Instead of considering Intel’s Q4 2007 and projected Q1 2008 performance as proof of any weakness in the tech industry, financial analysts should step back and consider that they, themselves may have been irrationally exuberant. Intel’s quarterly report and balance sheet reveal no pressing weaknesses. Business is strong across the entire globe, operating income and gross margins both rose significantly, and the company’s lower-than-expected first quarter revenue projection is lower than analysts would like precisely because Intel chose to err on the side of caution.

Disclaimer: I work for Intel.

AMREP Has Record Quarter

I guess you could say that AMREP owned most of Rio Rancho at some point. They basically started Rio Rancho, the first house I bought here was made by AMREP. Thankfully they are out of the house building market.

Their latest financial report is a good indicator that the real estate marked hasn’t slowed down that much here.

Revenues of the Company’s AMREP Southwest real estate subsidiary were $37,092,000 in the first quarter of 2007 compared to $7,689,000 in the same quarter last year. This substantial revenue increase was primarily due to increased sales of both developed and undeveloped lots in AMREP Southwest’s principal market of Rio Rancho, New Mexico, where interest in the Company’s landholdings did not appear to be impacted by the slowdown in housing that has been reported in many parts of the country.