Intel cuts 12,000 employees and restructures

Intel's latest financial report for the first quarter of 2016 was associated with massive cuts within the company. According to official figures, about 11% of employees from divisions from around the world will be cut. At current employee rates, approximately 12,000 are being reduced.

The termination process should help Intel accelerate the transition from a "computer company" to "a company that is the foundation for cloud services that bring together billions of smart devices." Most of the employees will receive information on dismissal within 60 days, and the other part will be forced to wait until 2017.

The decision to reduce looks quite logical - next year Intel published very restrained earnings forecasts, which turned out to be less than originally planned by the company's analysts. In addition, amid news of a decrease in revenue forecast for the coming year, Intel chief financial officer Stacy Smith will take over as head of sales, production and operations, and the company is in search of a new financial director. The exact name of the new position is not disclosed, as well as the increase is unknown or vice versa less significant position.

Restructuring will lead to additional spending of $ 1.2 billion in the second quarter, but the company hopes to save in this way $ 750 million by the end of this year and $ 1.4 billion by the middle of next year. Among the target areas in which Intel is going to take an active part, there are such as data centers, the Internet of things, memory, means of communication in business, as well as the gaming industry along with home electronics.

There were no announcements regarding the personal computer market, as well as the launch of Skylake processors, as well as the next steps in the development of this direction. However, Intel is unlikely to leave this area, which still generates a relatively large part of the profit.