Intel Corp said on Tuesday (April 19) it would cut 12,000 jobs globally, or 11 percent of its workforce, as it refocuses its business towards making microchips that power data centers and Internet connected devices and away from the declining personal computer industry it helped found.
Tech companies including the former Hewlett Packard Co and Microsoft Corp have reorganized in the face of the PC industry decline. Many new tech users rely on mobile phones for their computing needs and corporations increasingly rely on big computers rather than desktop models to run their businesses.
Intel, the world‘s largest chipmaker, lowered its revenue forecast for the year. It now expects revenue to rise in mid-single digits, down from its previous forecast of mid- to high-single digits.
Intel’s shares were down 2.6 percent at $30.78 in extended trading.
The company also said Chief Financial Officer Stacy Smith will move to a new role leading sales, manufacturing and operations. Intel said it would begin a formal search process for a successor.
The Santa Clara, California-based company has been focusing on its higher-margin data center business as it looks to reduce its dependence on the slowing PC market. Intel has also made inroads into the mobile devices market, although competitors such as Qualcomm Inc dominate that area.
Intel said in a statement the job cuts would be carried out by mid-2017 and the restructuring would “accelerate its evolution from a PC company to one that powers the cloud and billions of smart, connected computing devices.”