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.

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