Intel reports 2013 financials, plans 5% cut to workforce

Intel has reported its financial results for the fourth quarter of 2013 and the year as a whole. The company raked in $52.7 billion last year, slightly less than the $53.3 billion it earned in 2012. Here's how the other yearly totals compare:

  2013 2012 Change
Revenue $52.7 billion $53.3 billion down 1%
Operating income $12.3 billion $14.6 billion down 16%
Net income $9.6 billion $11.0 billion down 13%
Gross margin 59.8% 62.1% down 2.3 points

Operating income and net income both suffered double-digit declines from the previous year. Intel's gross margin dropped by 2.3 percentage points, as well.

The overall decline in the PC industry surely bears some of the blame for Intel's lower earnings. At least the Q4 results are more encouraging, though. Revenue, income, and gross margins were all up versus the same quarter in 2012:

  Q4 2013 Q4 2012 Change
Revenue $13.8 billion $13.5 billion up 3%
Operating income $3.5 billion $3.2 billion up 12%
Net income $2.6 billion $2.5 billion up 6%
Gross margin 62.0% 58.0% up 4.0 points

Intel CEO Brian Krzanich said the company had a "solid" Q4, and that the results show "signs of stabilization in the PC segment and financial growth from a year ago." Q4 revenue from the PC Client Group was flat versus the previous year and up 2% compared to Q3. However, yearly revenue for that group fell 4% to $8.6 billion.

After the financial results were announced, Intel spokesman Chris Kraeuter told Reuters that the chip giant plans to cut 5% of its workforce. The reduction "is part of aligning [Intel's] human resources to meet business needs," Kraeuter said. It's unclear which groups will be hit hardest by the cuts, but folks working on datacenter, low-power, and tablet products may be safe. According to Intel CFO Stacy Smith, those areas will see increased investment in 2014.

Looking forward, Intel expects 2014 revenue and gross margin to approximately match last year's figures. Q1 revenue is estimated to be around $12.8 billion with gross margin close to 59%.

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