- Intel announced Tuesday plans to cut 11% of its global workforce—up to 12,000 positions—by mid-2017.
- The jobs cuts are a result of Intel's continued shift away from its core PC chip business as the company invests more in cloud and Internet of Things technology.
- The company expects to save $750 million this year from the job cuts. By mid-2017, Intel expects the cuts to save the company $1.4 billion per year.
Reports first surfaced about the "significant" job cuts to Intel's 107,000-employee workforce over the weekend, but specifics were not yet known. The layoffs are result of Intel struggling in the face of market change, just like many other older tech companies. IBM too is facing layoffs and a workforce rebalance.
Intel is banking on cloud technology and the rise of IoT to help its business thrive in the face of declining PC market revenue. Last week, Gartner said PC sales fell nearly 10% in the first quarter of 2016. The analyst firm reported that in the first quarter of 2016 total worldwide PC shipments dropped to 64.8 million, marking the first time they fell below 65 million since 2007.
With more focus on data center, memory and connectivity technology, the company is hoping the broader market reach will improve its market outlook.
On Tuesday, Intel also announced that its chief finance officer is leaving the role to head sales, manufacturing and operations for the company. Intel is formally searching for a new CFO. The company will also have a one-time $1.2 billion restructuring charge.