Intel to cut 12,000 jobs globally by 2017 as part of a restructuring.
Intel Corp said it would cut 12,000 jobs globally, or 11 percent of its workforce, as the company moves away from its traditional business of selling chips used in personal computers. The company also said on Tuesday Chief Financial Officer Stacy Smith will move to a new role leading sales, manufacturing and operations. Intel said it would begin a formal search process for a successor. Intel's shares were down 2.5 percent in extended trading. The company said it would record a pretax restructuring charge of $1.2 billion in the second quarter. On a per share basis, the company earned 42 cents per share, in the first quarter, up from 41 cents a year earlier.
In 2015, sales from client computing dropped 8 percent to $32.2 billion. The new segment structure keeps client computing but also breaks out results for Intel's "Internet of Things" group, the "new technology" group which includes drones and wearables, as well as Intel's security group.
“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,” Intel CEO Brian Krzanich said in a statement that was emailed to employees. The fact is that Intel is a desktop computer chip maker at a time when desktop computers aren’t doing very well, and as PC sales dropped something had to give. Intel is trying to transform as it so eloquently put in its announcement into a company that does more than provide chips for computers. In a time where people are buying more mobile devices and tablets, it’s not an area that Intel has excelled.