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Due to waning demand for its processors, the Santa Clara, California based company confirmed on January 17th after reporting its profits and revenue that it will cut more than 5,000 jobs in 2014 as this is the second consecutive year profits have fallen.  

These cuts result in a failure to quickly adapt to smaller form factors.  Not the PC form factor but in this case the smaller form factor would represent the smartphone, tablet and phablets; the Ultrabook seems to not have been met with the enthusiasm they had thought.  The issue is not totally with their technology as they can already adequately cool their processors and offer adequate speeds but may result in inability to meet the pricing demands these forms factors require.   ARM and AMD seem to have no issues adapting to these BOM (Build of Material) requirements and they are profiting off of this ability and agility to meet these demands.

Intel will not let this setback destroy them, of that I am sure, and they will work hard to correct this.  The unfortunate part is that those 5,000+ people will be laid off and will not benefit from Intel correcting its mistakes later as they will already be gone.  Thankfully, at least Intel is not just letting go of all of these employees, they will buyout many of their contracts and offer early retirements.  I do have some friends that work at Intel, I will be checking in on them shortly and possibly update this article as well if they allow it.

Bias aside, what do you think about this?


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