Intel to cut 12k jobs to shift to new growth areas
INTEL will slash up to 12,000 jobs worldwide as it seeks to shake up its business to reduce dependence on the slumping personal computer market, the United States tech giant said on Tuesday.
Known for its role as the leading PC chipmaker, it has in recent years been seeking to shift to mobile and emerging technologies.
The restructuring will cut about 11 per cent of the workforce by mid-2017 and aims to "accelerate evolution from a PC company to one that powers the cloud and billions of smart, connected computing devices", it said.
"Our results over the last year demonstrate a strategy that is working and a solid foundation for growth," said chief executive Brian Krzanich.
"The opportunity now is to accelerate this momentum and build on our strengths."
Intel will be increasing investments in key growth areas, which include the range of smart home and other connected devices known as the "Internet of Things", as well as its data centres and computer memory operation.
Mr Krzanich has spoken frequently about the shift in computing and laid out his vision more than a year ago, telling the Consumer Electronics Show that the industry would be "unleashed" by wearables.
"So, computing becomes unwired and everything becomes smart and connected," he noted at the time.
Intel said the job cuts will come from "a combination of voluntary and involuntary departures" and a re-evaluation of its global operations.
It will set aside US$1.2 billion (S$1.6 billion) to cover the costs of the job reductions and expects the programme to save US$750 million this year and US$1.4 billion by mid-2017.