When Intel reports earnings later on Tuesday, the world’s largest chipmaker will have to pay the price for its continued missteps in mobile.
Intel missed the mobile revolution. Now it faces its day of reckoning.
The company could announce mass layoffs when it reports quarterly earnings later Tuesday.
Asa Mathat
PC sales saw another double-digit decline even after a terrible 2015, results that are sure to hit Intel hard. Meanwhile, the company continues to essentially be on the sidelines of the smartphone revolution.
Intel is expected to address the challenges with further restructuring. According to the Oregonian, layoffs are expected to number in the thousands, significantly exceeding last year’s cuts.
Intel has also been making some leadership changes, with longtime executives Kirk Skaugen and Doug Davis both headed for the exit. Some uncertainty remains around a third executive, Aicha Evans, who reportedly told the company she planned to leave. Sources say Evans remains in her current post for the moment, with Intel continuing to explore ways to keep her at the company.
An Intel representative declined to comment on any further layoffs or executive shifts.
The company is also digesting its recent acquisition of Altera, a leader in the niche programmable chip market.
It’s not all gloom and doom for Intel, with the company said to be in the running to see its modem chips included in the next iPhone.
The company has also seen some strength in its data center business and has been planting seeds it hopes will lead to future growth from the Internet of Things and wearable devices.
As for the numbers, analysts expect Intel to earn 47 cents per share on revenue of $13.8 billion. That revenue is even less than the underwhelming $14 billion forecast Intel issued in January.
Re/code will have coverage and analysis of the numbers and the conference call after earnings come out this afternoon.
This article originally appeared on Recode.net.
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