Intel cuts 12,000 jobs in restructuring initiative
It's moving away from the declining PC market and refocusing efforts on IoT.
Intel announced that it's laying off 12,000 employees today in a radical measure designed to restructure the company. In a statement, the company said that it plans to accelerate its evolution from a PC-centric business to one that's more focused on connected wearables and the Internet of Things. Last year, Intel's growth in data and IoT businesses made up 40 percent of its revenue, while the PC market continues its downward trend.
"Our results over the last year demonstrate a strategy that is working and a solid foundation for growth," said Brian Krzanich, Intel's CEO, in that statement. "The opportunity now is to accelerate this momentum and build on our strengths." As a result, the firm plans to increase investment in data center, IoT, memory and connectivity while reducing its focus on PCs. The cut of 12,000 positions is a drop of about 11 percent of its workforce.
The announcement arrived at the same time as the company's earnings result for the first quarter of 2016, where it reported a revenue of $13.7 billion. It noted that Client Computing Group revenue was down 14 percent sequentially and up two percent year-over-year and Non-Volatile Memory Solutions Group revenue dipped 15 percent from last month and is down 6 percent year-over-year. Its Internet of Things Group, on the other hand, is healthy at $651 million in revenue, which is up 4 percent sequentially and up 22 percent from this time last year.
