Intel Corp. (NASDAQ: INTC) has disclosed that it will cut 12,000 workers, or about 11% of its workforce. It has changed direction, management said, to focus more on the cloud. Arguably, the acknowledgment of the repositioning comes late, based on the crowded cloud sector. The architect of the changes is CEOÂ Brian Krzanich, who made $14.6 million last year. He did not voluntarily take a pay cut as part of the effort to save costs, and clearly the board did not make him take one. It would have been a symbol that management participated in a restructuring too long in the making.
Arriving at a massively crowded party often has consequences. However, Intel can claim it has started to benefit from the cloud:
The data center and Internet of Things (IoT) businesses are Intel’s primary growth engines, with memory and field programmable gate arrays (FPGAs) accelerating these opportunities – fueling a virtuous cycle of growth for the company. These growth businesses delivered $2.2 billion in revenue growth last year, and made up 40 percent of revenue and the majority of operating profit, which largely offset the decline in the PC market segment.
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