Intel cuts 12,000 employees and restructures

Intel's latest financial report for the first quarter of 2016 was associated with massive reductions within the company. According to official data - about 11% of employees from departments from around the world will fall under cuts. At current employee rates, approximately 12,000 fall under reduction.

The dismissal process should help Intel accelerate the transition from the "computer company" to "the company that is the basis for cloud services that unite billions of smart devices." Most of the employees will receive information about dismissal within 60 days, and the other part will have to wait until 2017.
')
The decision to reduce looks quite logical - for the next year, Intel published a very low-key forecast for revenues, which turned out to be less than originally planned by analysts of the company. In addition, amid news of lower revenue forecasts in the coming year, Intel Chief Financial Officer Stacy Smith will take the post of head of sales, manufacturing and operations, and the company is in search of a new financial director. The exact name of the new position is not announced, as well as the increase is unknown or, conversely, a less significant position.

Restructuring will lead to additional expenses in the amount of $ 1.2 billion in the second quarter, but the company hopes to save $ 750 million in this way 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 are such as data centers, the Internet of things, memory, communication tools in business, as well as the gaming industry along with home electronics.

Regarding the personal computer market, there were no statements, 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 sphere, which still generates a relatively large part of the profits.