Intel is in major trouble

[WhiteTara]

Intel is in major trouble

It’s one of the biggest tech companies in the Internet age, but Intel is in such a bad position now that it’s being forced to lay off 12,000 employees by 2017.

That’s a whopping 11 percent of its entire workforce as the company restructures in the wake of declining PC sales and as the company tries to rebrand itself as a firm focused more on cloud computing and smart devices, according to a company statement.

Intel will make the cuts through 2017, which will involve consolidating offices across the globe. The cuts will save the company $750 million this year and $1.4 billion by mid-2017, the company says.

Intel didn’t reveal exactly where those cuts would be taking place, however.

In the first quarter, Intel was trading at 42 cents per share and has $13.7 billion in revenue. That came in below Wall Street estimates.

[PoliticAverse]

1. They got beaten in the mobile market.

Also their PC processors aren't that much faster or cheaper or much lower power consuming than those they sold 5 years ago.

[orwell]

2. Intel closed on Friday at $31.64 per share...n/t

[WhiteTara]

3. damn. When I read it was at $.42 I wanted to buy

but I missed again.

[mahatmakanejeeves]

4. Intel had first quarter earnings of 42 cents per share in the first quarter.

Intel Reports First-Quarter GAAP Revenue of $13.7 Billion; Non-GAAP Revenue of $13.8 Billion

SANTA CLARA, Calif., April 19, 2016 -- Intel Corporation today reported first-quarter GAAP revenue of $13.7 billion, operating income of $2.6 billion, net income of $2.0 billion and EPS of 42 cents. Intel reported non-GAAP revenue of $13.8 billion, operating income of $3.3 billion, net income of $2.6 billion and EPS of 54 cents. The company generated approximately $4.0 billion in cash from operations, paid dividends of $1.2 billion, and used $793 million to repurchase 27 million shares of stock.

Shares of INTC have traded between $24.87 and $35.59 over the last 52 weeks.

Full disclosure: I own shares of Intel.