Intel lowered its revenue forecast for the year Wednesday, but doesn’t expect to conduct widespread layoffs as a result. Instead it will slow down the pace of hiring, a spokesperson told Dice News.
“We have no plans to change the overall size of the workforce, but do plan to slow down our hiring overall,” said the spokesperson, Chris Kraeuter. “We will focus primarily on making strategic hires and moving people around where we need, as we make adjustments in our strategy.”
Intel closed out 2012 with 105,000 employees worldwide, a 4.9 percent increase over the previous year, according to the company’s annual report. As of June 29, the company had a total of 106,000 workers, Kraeuter said.
When it comes to “strategic hiring,” engineers and developers should look to comments from CEO Brian Krzanich: “Intel Atom and Core processors and increased SOC integration will be Intel’s future,” he said in a statement accompanying the company’s earnings report. “We will leave no computing opportunity untapped. To embrace these opportunities, I’ve made it Intel’s highest priority to create the best products for the fast growing ultra-mobile market segment.”
Initially, Intel had expected to increase its revenues this year by low percentage points. Now it says revenues will be flat year-on-year. In 2012, the chip giant generated $53.3 billion in revenues, down from $54 billion in 2011.
With less money than anticipated coming in, Intel is reining in expenses. The company plans to spend approximately $18.7 billion on research and development, as well as management, general and administrative expenses. That’s down $200 million from previous expectations, Intel said.
The decision to throw less money at R&D comes as Krzanich tries to improve the company’s performance in the mobile space, an effort to which he’s taking a hands-on approach. Shortly after he was named CEO in May, he began a restructuring that resulted in more product groups reporting to him.