Intel to cut 12 000 jobs until mid 2017

IntelIntel is planning to cut 12 000 employees which is around 11% of it’s workforce. The company calls that “restructuring initiative” as it aims to evolve from a PC Company to ” one that powers the cloud and billions of smart, connected computing devices”. Intel wants to focus more on growing and profitable businesses like data centers, Internet of Things(IoT),field programmable gate arrays (FPGAs) which are the primary growing factors for them in the recent years. These sectors delivered 2.2 billions revenue for the last year and consists of 40% of total revenue.

It looks like the shrinking PC market is not so attractive for Intel anymore. That news comes at the background if Intel’s domination on the CPU market. Their last generation of CPUs “Skylake” is unmatched by their competitor AMD. The successor of the “Skylake” architecture is not expected before Q4 2016 or most likely Q1 2017. It will debut by the name “Kaby lake” and should compete with the upcoming AMD’s “Zen” architecture. Intel’s domination in the recent years gives them confidence to focus on that “restructuring initiative”. It looks like AMD would have a chance to regain part of the CPU market.

Intel’s CEO claims that the 12,000 cut jobs will be made through “a combination of voluntary and involuntary departures” and that most employees affected will be told within the next two months.The job cuts will affect employees all over the world and some programs will be re-evaluated. Some of the cuts, however, will stretch out as late as mid-2017. The company is hoping to save 750$ millions until the end of the year and another 1.4$ billions on yearly base in 2017.

At the same time Intel also announced it’s financial results for the first quarter of 2016. You can see them here.

About the Author

Viliyana Filipova
My name is Viliyana Filipova and I’m working as content writer and analyst of Business News Feeds Journal. I'm writing about finance statements, business analyze and employment for Central and Eastern Europe, Russia and Middle East.

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