Intel's Q1 2016 financial earnings report was paired with a major announcement of worldwide layoffs that will thin its global employment numbers by "up to 12,000" staffers.
The Tuesday announcement clarified that the staffing cuts will affect approximately 11 percent of Intel's global workforce and that the layoffs were meant to "accelerate [Intel's] evolution from a PC company to one that powers the cloud and billions of smart, connected computing devices." A "majority" of affected employees will learn about their status within 60 days, while other staffers will have to wait until 2017.
The news comes as Intel announced reduced revenue projections for the next full year, along with a search for a new chief financial officer. Current CFO Stacy Smith will take on a new executive role "leading sales, manufacturing, and operations" once his current position has been filled, but Intel didn't clarify the new position's name, nor whether it was a jump up or down the corporate ladder.
Restructuring will require Intel to take a second-quarter charge of $1.2 billion, but the company insists the move will eventually save it $750 million this year and $1.4 billion annually by the middle of next year. The announcement listed growth industries such as "data center, [Internet of Things], memory, and connectivity businesses, as well as growing client segments such as 2-in-1s, gaming, and home gateways." Its rebuking of the PC sector didn't specify anything in particular about market uptake of the company's Skylake processor launch in late 2015.
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