Intel has announced that it will cut 11 percent of its global workforce as it tries to realign its business strategy away from personal computing to data center processing. The total number of job cuts will be around 12,000. The exact locations at which jobs will be cut globally have not been announced.
This comes against the backdrop that PC sales have been struggling since the rise of smartphones and the global personal computers shipments fell by another 11.5 percent this first quarter.
Most of the manufacturing facilities of Intel are in the United States. Intel has also said that it expects the PC market to keep on declining in the future and by a percentage point in 2016. Intel has now focused on the data center business. Though it has tried to make inroads to the mobile devices business segment but currently it is dominated by Qualcomm and Samsung.
Intel said that the job cuts will by complete by mid-2017 and the structuring of the company will “accelerate its evolution from a PC company to one that powers the cloud and billions of smart, connected computing devices.”
The company has earned 42 cents per share in the first quarter which is only marginally higher than the last year’s 41 cents. Net revenue also increased from $13.70 billion to $12.78 billion.
Intel’s shares were see trading 2.2 percent down at $30.90 in the extended trading session.