Intel Cuts 12,000 Workers: Microchips In, PCs Out


Intel Corp. on Tuesday announced its plans to slash 12,000 jobs, almost 11 percent of its employees, which puts the number of employees affected at the highest to date. The decision came with its first quarter results and is seen as a consequence of the steep fall in the personal computer market.

Chief Executive Brian Krzanich said that it was a tough but necessary decision. “These are not changes I take lightly,” Krzanich wrote to employees in an email, as quoted by the Wall Street Journal.

The job cut will not only allow the company to cut costs but also help it save capital to invest in other lucrative fields.

“Acting now enables us to increase our investments in areas that are critical for our future success. This is a comprehensive initiative. We will emerge as a more collaborative, productive company with broader reach,” Tech Crunch quoted Krzanich as saying.

Intel is a chip maker of desktop computers which has been in the market since the late 1980s. It had partnered with Microsoft Corp. and together they controlled a major share of the market for decades. However, desktop computers are now slowly being phased out because of the emergence of smartphones. The company has not been able to take advantage the boom in the smartphone market.

“We’ve talked about this transformation where we are moving from a client-centric [model] to a company that focuses more and more on a broader set of products — the cloud and all the connected devices that connect to that cloud and the connectivity that brings those devices to the cloud. That includes the PC but it’s much more than that,” he said.

Rob Enderle, a market research who heads the Enderle Group, said that the company has seen the decline in the PC market and are now focused at diverting their efforts elsewhere.

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