Intel Corp (INTC)

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Intel Corp. , on the heels of reporting lower-than-expected fourth-quarter profit, said it expects to reduce its workforce by about 5% over the course of 2014.
The big chip maker ended 2013 with 107,600 employees, indicating that the cuts could affect close to 5,400 workers.
Intel on Thursday projected flat revenue for 2014, while analysts had been looking for revenue growth of about 1.2%. While the company's business selling chips for PCs showed signs of stabilizing, Intel's business selling server chips grew less than expected.
The company's head count had swelled steadily in the years following a restructuring ordered in 2006 by then-Chief Executive Paul Otellini . He gave up that position in May to Brian Krzanich , who has shifted the company's priorities in several areas.
Mr. Krzanich, for example, is boosting Intel's efforts to target chips for wearable devices as well as smartphones and tablets. Plans to shift employees to different jobs, and reduce overall head count, were signaled Thursday during a conference call following the earnings release.
"We'll be bringing employment down over the course of the year," Stacy Smith , Intel's chief financial officer, said during the call. "So even beyond the headline number, there's going to be a significant shift in investment over the course of the year."
Mr. Smith didn't quantify the reduction, which was confirmed Friday by an Intel spokesman and reported earlier by Reuters. The spokesman said the cuts didn't represent a layoff, but would come through other means.
Intel on Thursday reported net income for the period ended Dec. 28 of $2.63 billion , or 51 cents per share, compared with profit in the year-earlier period of $2.47 billion , or 48 cents per share. Revenue rose to $13.83 billion from $ 13.48 billion .
Analysts surveyed by Thomson Reuters had expected earnings per share of 52 cents on revenue of $13.7 billion .
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