Intel Cuts 12K Jobs as PC Sales Slide

Company switching focus to 'powering the cloud'
By Newser Editors and Wire Services
Posted Apr 20, 2016 12:17 AM CDT
Intel Cuts 12K Jobs as PC Sales Slide
A laptop using the "Skylake" chip is seen at the Intel booth during CES in Las Vegas.   (John Locher)

Intel is cutting 12,000 jobs—about 11% of its workforce—as it reorganizes to confront a decline in sales of personal computers, the AP reports. The giant chipmaker made the announcement Tuesday as it reported lower-than-expected sales for the first quarter. This as industry analysts say an extended slide in global PC sales is showing no signs of leveling off. Intel, which has long been the world's leading maker of PC chips, is now trying to expand into other types of computing. "It's time to make this transition," CEO Brian Krzanich told analysts. While calling the job cuts "difficult," he said they would help the company sharpen its focus in new areas. The latest cuts follow an earlier reduction of about 5,000 jobs announced by Intel in 2014, and analysts say they may not be the last.

Krzanich has been pushing Intel to change its focus from PCs to other computing segments that are growing and providing more profit. These include making microprocessors for "cloud computing" data centers, along with chips for Internet-connected gadgets, wearable devices, and drones. "We are evolving from a PC company to one that powers the cloud and billions of smart, connected computing devices," he said in a statement. An Intel spokeswoman declined to say exactly which jobs or locations would be affected. Intel has large campuses in Portland, Ore.; Chandler, Ariz.; Rio Rancho, NM; and Santa Clara and Folsom, Calif. It also has facilities in countries such as Israel and China. (More Intel stories.)

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