Intel Jobs & Layoffs 2014: Company Fires 5,000 Workers; Says it Isn't a 'Layoff'

By Desiree Salas (staff@latinospost.com) | First Posted: Jan 21, 2014 03:14 AM EST

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Last Friday, Intel announced it's trimming down its workforce by 5,000, CNN reported.

The chip-making company also added that it's "not announcing a layoff."

Okay, they're firing as many as 5,000 but they're not? Confusing, isn't it?

Let's hear the exact statement Intel released to various news outlets, such as CNET, regarding this significant corporate move.:

Intel will be aligning resources to meet the needs of the business this year. This will include targeted workforce reduction in addition to realignment of resources.

While we expect that employment will come down by approximately 5 percent this year, we are not announcing a layoff. When we talk about reduction of the workforce there are a number of things that can happen. It could include redeployments, voluntary programs, retirements, and through attrition.

There you go. However, the definition for "layoff" that Investopedia provided says the word involves eliminating jobs "regardless of how good the employees' performance." So what Intel is trying to do can still fall within the perimeters that define a layoff, right?

A spokesman for the company, Chris Kraeuter, told CNN that "it's not a giant, one time action. This is a target employment rate for the end of the year." And so that's why, he insisted, it's "not a layoff."

This update came at the heels of Intel's report, which showed "lackluster" earnings and forecasts.

The company's CEO, Brian Krzanich, told CNET in a conference call that the enterprise market was weak.

"Enterprise...fell short of our expectations for the fourth quarter and the year as we overestimated the rate of recovery among corporate buyers," Krzanich said.

CNN also noted that the firm's investors are "anxious" for Intel to "become less dependent on the slow growing personal computer market and more engaged in mobile technology."

When asked about starting the Fab 42 plant project in Arizona, Krzanich gave a not-so-encouraging answer about the PC industry.

"We have to start construction projects three years roughly in advance. They're very complex. If you go back three years ago, our view of the PC industry, PC growth was much more robust than what has played out," he said.