12,000 Intel employees will be getting laid off soon as the company has announced that it will be undergoing a restructuring to intensify the company’s focus in high-growth areas.
In a statement issued by Intel, the company states that it will be focusing more on the data center and Internet of Things (IoT) business as well as the memory and field programmable gate arrays (FPGAs). According to the statement, both sectors made up 40% of Intel’s USD 2.2 billion revenue growth last year, which largely offset the decline in the PC market segment.
Brian Krzanich, CEO of Intel, has outlined the changes that will be happening to the company. Krzanich states that Intel has the opportunity to “accelerate this momentum and build on our strengths.” “I am confident that we’ll emerge as a more productive company with broader reach and sharper execution,” Krzanich says.
The reduction of 12,000 employees – roughly 11% of Intel’s workforce – will occur globally through site consolidations, voluntary and involuntary departures, and re-evaluation of programs by mid-2017. Intel expects this restructuring to deliver the company USD 750 million in savings this year and an annual run rate savings of USD 1.4 billion by mid-2017.
Source: Intel
1 comment