Intel to slash 12,000 jobs as it moves away from PCs
Giant chipmaker Intel Corp. will slash 12,000 jobs, or about 11% of its workforce, to help offset declining PC sales and reposition itself as a firm focused on cloud computing and smart devices, the company said Tuesday.
“We are evolving from a PC company to one that powers the cloud and billions of smart, connected computing devices,” Intel Chief Executive Brian Krzanich said in a statement.
The job cuts will last through the middle of 2017 and will involve consolidating offices worldwide and “a combination of voluntary and involuntary departures, and a re-evaluation of programs,” the company said.
Intel expects the cuts will save the company $750 million this year and $1.4 billion by mid-2017.
The company declined to say where those cuts would take place. Intel, which is headquartered in Santa Clara, Calif., has manufacturing facilities in Oregon and Arizona as well as China, Mexico, Israel and Ireland, said Betsy Van Hees, an analyst with Wedbush Securities.
“Unfortunately, a reduction in the workforce was long overdue,” Van Hees said. “It’s a pivotal time for the company, and it’s critical that they align the organization to support the new business model.”
The news was announced as Intel posted first-quarter earnings that came in below Wall Street estimates.
“We are evolving from a PC company to one that powers the cloud and billions of smart, connected computing devices,” Intel Chief Executive Brian Krzanich said in a statement.”
very smart to move to “smart”..he means the IOT..PC’s are dying at a rapid rate..and 12000 is a lot of employees..