Intel shifting from PCs to data center, cloud and IoT businesses
Intel CEO Brian Krzanich on Tuesday told employees a company-wide “restructuring initiative” will involve cutting some 12,000 jobs, 11% of the company’s global workforce, by mid-2017 as part of a shift away from the PC business to focus on the Internet of Things and data center ambitions.
According to the company, the move is meant “to accelerate…evolution from a PC company to one that powers the cloud billions of smart, connected computing devices.” Intel regards data centers and Internet of Things (IoT) businesses as “primary growth engines” that delivered $2.2 billion in revenue growth in 2015 accounting for 40% of total revenue, “which largely offset the decline in the PC market segment.”
The job cuts will come through consolidation, voluntary and involuntary departures, as well as by way of “re-evaluation of programs. Most of the cuts will be communicated to affected employees over the next 60 days.
The downsizing will save some $750 million in 2016.
“Our results over the last year demonstrate a strategy that is working and a solid foundation for growth,” Krzanich said. “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.”
