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Intel announces cuts to headcount

After a weak set of first-quarter results, the microchip giant laid out plans to downsize its worforce

Flagging demand for personal computers weighed on first-quarter results at Intel (US:INTC), forcing the microchip giant to warn revenue growth would only be in the "mid-single digits" in 2016. Management also revealed it would reduce headcount by 11 per cent - or around 12,000 jobs - in order to accelerate the group's shift towards cloud computing and connected devices.

IC TIP: Buy at $31.60

Sales in Intel's core business crept up 2 per cent to $7.19bn (£5bn). More positively, revenues soared 22 per cent in the 'internet of things' segment and rose strongly in both the data centre and security divisions. The upshot was a 13 per cent rise in adjusted operating profits to $3.3bn. Broker JP Morgan expects EPS of 2.30¢ in 2016, down from 2.33¢ in 2015.