Intel is continuing its move away from a focus on the struggling PC market to concentrate on the internet of things and wearables – but, in the process, has announced that it is cutting 12,000 employees.
The reorganisation was announced on the 19th April, and the job losses are equal to about 11% of the company’s workforce. Intel has targeted mid-2017 as the time period for the completion of the changes, which will be achieved through worldwide site consolidations; a combination of ‘voluntary and involuntary departures’; and a re-evaluation of programmes. Affected employees will be informed about a majority of these actions by mid-June.
Intel expects the programme to result in savings of about $750 million this year, and annual run rate savings of $1.4 billion by mid-2017. A one-time charge of approximately $1.2 billion will be recorded in Q2’16.
The move follows Intel slowing down its chip release cycle (Intel Moves Away From Moore’s Law) and the (voluntary) departure of PC head Kirk Skaugen, on the 8th April. Skaugen was replaced by mobile client VP Navin Shenoy.
