Year to date, the worst performing stock in the Dow Jones Industrial Average is Intel Corp. (NASDAQ: INTC), down 12.1%. Apparently laying off thousands of employees, which usually makes investors happy because it lowers costs and improves profits, is having the contrary effect on Intel stock.

Intel posted revenues of $13.8 billion in the first quarter, just $30 million short of estimates. Earnings per share (EPS) totaled $0.54, about 11% better than estimates. But the company’s cash cow, the personal computer (PC) business, is dwindling.

Chip sales for PCs make up about 60% of Intel’s revenue stream, and PC sales in the quarter declined by nearly 10% to just under 65 million units, the first time since 2007 that shipment volume fell that low, according to Gartner. PC sales in the United States fell 6.6% year over year in the first quarter to 13.1 million units, the lowest total in three years.

When the company reported earnings nearly two weeks ago, it touted its growth in the data center and Internet of Things businesses. The company also believes it has strengths in the memory and programmable solutions markets.

That’s fine, but what Intel did not mention is that the mobile business has almost completely passed the company by. Intel on Friday confirmed a report at Forbes that it is ditching some of the chips it makes for smartphones and tablets, but that it would continue to work on next-generation mobile technology (5G).

For the second quarter, Intel expects to report revenues at $13.5 billion, plus or minus $500 million, as well as restructuring charges of $1.2 billion. Consensus estimates call for $0.55 in EPS on $14.16 billion in revenue.

Intel stock closed at $30.28 on Friday, down about 2.7% for the day, in a 52-week range of $24.87 to $35.59. The consensus price target on the stock is $35.41.

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