Intel rubbishes reports of 5,400 job cuts

Intel has clarified that it is likely to shed around four per cent of its worldwide workforce after redeployments and retirements are taken into account.

On Friday, an Intel spokesperson said the firm would reduce "around 5 per cent" of its workforce, a day after it posted an annual net profit of $9.6bn - 13 per cent down on the previous year.

Intel's total workforce is estimated to be between 107,000 - 108,000 people. This would mean up to 5,400 jobs could be on the line, if five per cent of workers are up for the chop.

However, in a statement to IT Pro, Intel keenly stressed the specific number of job cuts has not been decided, but is confident the figure will be under the five per cent mark.

"Business groups are developing plans to reduce spending and this will include some reduction in headcount," the spokesperson told IT Pro.

"When we talk about reduction of the workforce there are a number of things that can happen. It could include redeployments, voluntary programs, retirements, and through attrition. All are options so it would be wrong to conclude this is a layoff. The usual rate of attrition is close to 4 per cent worldwide".

If Intel's total workforce of 108,000 does end up being reduced by 4 per cent, this would result in a total of 4,320 job losses.

In 2006, Intel announced it would cut the workforce by 10,000, but an upturn in fortunes meant it actually ended up employing more people.

Intel isn't the only blue-chip company that's had to streamline to save money of late. HP started 2014 by announcing it was going to lay-off another 5,000 workers, due to "market pressures". This will take the total number of reductions to 34,000 under current CEO Meg Whitman.