Intel will cut up to 12,000 jobs globally – approximately 11% of its workforce – as it aims “to accelerate its evolution from a PC company to one that powers the cloud and billions of smart, connected computing devices.”
Intel said it sdata center and Internet of Things (IoT) businesses are the primary growth engines now, with memory and field programmable gate arrays (FPGAs) accelerating these opportunities. These growth businesses delivered $2.2 billion in revenue growth last year, and made up 40 percent of revenue and the majority of operating profit, which largely offset the decline in the
PC market segment.
“Our results over the last year demonstrate a strategy that is working and a solid foundation for growth. The opportunity now is to accelerate this momentum and build on our strengths. These actions drive long-term change to further establish Intel as the leader for the smart, connected world. I am confident that we’ll emerge as a more productive company with broader reach
and sharper execution,” stated Intel CEO Brian Krzanich.
Intel expects the restructuring to deliver $750 million in savings this year and annual run rate savings of $1.4 billion by mid-2017. The company will record a one-time charge of approximately $1.2 billion in the second quarter.
