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Intel to cut 12,000 jobs as global demand for PCs continues to wane

By Shawn Knight
Apr 20, 2016
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  1. Intel said during its most recent earnings report that it would slash roughly 11 percent of its workforce, or about 12,000 jobs, by mid-2017 as demand for PCs continues to wane.

    The world’s largest chipmaker labeled the move as a restructuring initiative designed to accelerate its move from a PC company to one that “powers the cloud” and the billions of computing devices connected to it.

    Intel listed the data center and Internet of Things (IoT) businesses as its primary growth engines.

    Chipzilla reported revenues of $13.7 billion for the first quarter with a net income of $2 billion, or $0.42 per share. Analysts were expecting $13.8 billion in revenue and $0.47 per share for the three-month period.

    Intel said its workforce reduction, a combination of voluntary and involuntary departures, would impact positions around the world. The majority of job cuts will be communicated to those affected over the next couple of months.

    The chipmaker said it expects to save $750 million this year and $1.4 billion by mid-2017 as a result of the restructuring effort. It will record a one-time charge of $1.2 billion next quarter related to the job cuts.

    Intel CEO Brian Krzanich said results over the last year demonstrate a strategy that is working and a solid foundation for growth, adding that the opportunity now is to accelerate the momentum they have and build on their strengths.

    For the second quarter, Intel forecasts revenues of $13.5 billion which is a bit below the $14.2 billion average analyst estimate according to Bloomberg.

    Image courtesy Justin Sullivan, Getty Images

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  2. jhill3d71

    jhill3d71 TS Rookie

  3. stewi0001

    stewi0001 TS Evangelist Posts: 1,181   +528

  4. davislane1

    davislane1 TS Evangelist Posts: 3,536   +2,333

  5. Raoul Duke

    Raoul Duke TS Guru Posts: 930   +354

    Is Intel holding back due to lack of competition? Seriously better cpu's would spur growth. Even now, $2 billion profit in 3 MONTHS seems like a lot of change to me.
     
  6. captaincranky

    captaincranky TechSpot Addict Posts: 11,672   +1,871

    Well it is but, some avaricious sociopath spouting boilerplate platitudes is supposed to make you think it's the end of the financial world. Oh, and make the 12,000 people losing their jobs feel as they are contributing to world economic health. I'm sure this CEO will cry into his $1,000.00 bottle of wine over their leaving? (y)
     
    Skidmarksdeluxe likes this.
  7. lripplinger

    lripplinger TS Addict Posts: 258   +89

    You always hear about "PC sales in decline! OMG Bobby, you forgot the propane!" The DIY market is on the rise dramatically. They (as in the useless firms that track this crap, like Gartner) never account for this. Also, low powered devices are all (at least certainly older generations of folks) need to browse the web and do email. I think Intel will focus more on this, as the new "Apollo Lake" SoC's will supposedly show.
     
  8. tonylukac

    tonylukac TS Evangelist Posts: 1,309   +56

    12,000. Is that enough?
     
  9. Jonathan12

    Jonathan12 TS Rookie

    I used to work at Intel, but got laid off. It sucks. I was depressed for a while, but I was laid off with a group.
    I did get unemployment benefits which I was thankful for while looking for another job.
    Also in the past 6 months I've bought 2 HP Envy Computers, both with Intel Inside. I upgraded the ram to 32GB, put my 6 hard drives in them (for myself & my uncle), and put 4GB video cards in them. You can't do this on a laptop, phone, or tablet.
     

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