Intel to cut 11 per cent of its global workforce
April 20, 2016 | 11:57
Intel has confirmed that it is to lay off a whopping 11 per cent of its workforce, some 12,000 people, despite a slight uptick in profits year-on-year.
Announced as part of the company's latest financial report, in which Intel recorded a 7 per cent increase year-on-year in revenue and three per cent increase year-on-year in net income, the layoffs form part of of what the company is calling a 'restructuring initiative to accelerate its evolution from a PC company to one that powers the cloud and billions of smart, connected computing devices.'
'Our results over the last year demonstrate a strategy that is working and a solid foundation for growth,' claimed Intel chief Brian Krzanich in an email to all staff regarding the layoffs. 'The opportunity now is to accelerate this momentum and build on our strengths. 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.'
12,000 positions at the company's global operations are due for the axe by mid-2017, as part of which it hopes to save $750 million by the end of this year and $1.4 billion a year following - but those are savings it will take a one-time $1.2 billion restructuring charge to accomplish.
Intel has not confirmed which divisions will be hardest hit by the redundancies, though the revelation that 40 per cent of its revenue and the 'majority of operating profit' came from its data centre and Internet of Things (IoT) divisions suggest that less profitable ventures such as mainstream desktop processors and mobile processors will be the targets.