Intel insists it is not simply laying off 5,000 people.
“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," the company told CNET.
Although Intel’s position in the x86 market remains secure, the x86 market itself is rapidly dwindling. Intel hopes to compensate in the server space and mobile. The company is planning to ship 40 million tablet chips this year, but it will have to sacrifice gross margins to pull it off, as the chips themselves have lower margins than big cores and Intel plans to offer generous subsidies for vendors who choose to adopt them.