Intel Corporation (INTC) To Cut Down 5000 Employees: Will Help To Regain Lost Ground ?

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Emerging Smartphone and Tablet market has given goosebumps to the PC and laptop manufacturers, which ultimately shocked Intel Corporation (NASDAQ:INTC). The market leader of Chip industry has announced to reduce its global workforce by 5% of its 107,000 employees on Friday.

“This is the part of aligning our human resources to meet business needs, the job reductions may include retirements, voluntary programs and other options,” spokesman Chris Kraeuter said.

This is not the first time Intel is shredding its workforce, in September 2013 the company said it would close an old factory in Massachusetts, eliminating about 700 jobs. But this is not the case with Intel alone, PC maker Hewlett-Packard Company (NYSE:HPQ), has announced that internal restructure would alter 34,000 jobs or 11 percent of its workforce throughout fiscal 2014. The most awaited projects of Intel, being executed in Chandler and Arizona worth $5 billion, has also been postponed till further notice. It was expected from these factories to manufacture Intel’s most advanced chips. The reason behind this undefined step must be delaying the job offers made to the employees in factories of Chandler and Arizona. Intel is dominating every other PC chipmaker from past many years but quite slow to adapt its processors for smartphones and Tablets as compared to Qualcomm Inc (NASDAQ:QCOM) and Samsung Electronics Co., Ltd. (KRX:005930).

PC and Laptops losing significance in the world market

The main concern still remains about the shrinking PC market. Penetration of smartphone and tablets has cut the demand of PC and made it an old school thing. As we can also say that PC is now available in pocket of the users in the form of smartphone and  tablets which gave rise to New Technolution.

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According to the another study, Worldwide PC shipment in Q4, 2013 totaled 82.6 million units, a decline of 6.9 percent compare to a year ago quarter that recorded 90.3 million PC unit shipments.

Worldwide PC shipments 2013

Is this too late for Intel ?

In 21st Century the needs and demands of the user have changed that was predicted by world’s most valuable brand Apple Inc. (NASDAQ:AAPL) much earlier, therefore it successfully acquired the emerging market of Smart Phones, Tablets and able to integrate with its Laptops & PC’s also. Similarly Google Inc. (NASDAQ:GOOG) had also adopted the change for the similar variation from being a Search Engine giant to become the most valuable and widely used mobile operating system by acquiring Android. As we all know “Change is the Law of Nature”, these companies eclipsed their rivals by variation of the products and monetized themselves. Although PC’s and Laptops markets are on a continuous decline, but the chipmaker Intel should be more worried about its biggest rival Qualcomm who is developing the processors for most of the smartphone and tablet vendors. Just few years back Qualcomm entered in the market and leapfrogged everyone else in making processors for smart devices. Whereas looking at the present scenario, it is won’t be unfair if said that coming years will be more lucrative for Pocket PC’s.

Intel also looked forward to introduce some of the smart phones with Xolo in collaboration but launching some product and attracting users towards that product is quite different. As a result those smartphones had debacle experience when it comes to compete with Samsung, Apple and other smartphone vendors. It is too late for the chip manufacturer to go through the transition phase, but its good if they are able to regain their position again. In this race of selling products with maximum profit margin, it doesn’t matter if you are late, what matters the most is coming up with some new strategy and capturing the market from competitors.

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