Intel has announced plans to cut up to 12,000 jobs globally by mid-2017, representing about 11% of its workforce. The company revealed the restructuring initiative on Tuesday, with employees informed via an email from chief executive Brian Krzanich.
In the email, Krzanich stated: “Our results over the last year demonstrate a strategy that is working and a solid foundation for growth. The opportunity now is to accelerate this momentum and build on our strengths.” He added that the actions would drive long-term change to establish Intel as a leader for the smart, connected world.
The job cuts will involve a mix of voluntary and involuntary departures, with affected employees to be notified over the next 60 days. At the end of 2015, Intel had approximately 112,000 employees, following its acquisition of Altera. The reductions are expected to be completed by mid-2017 and are projected to save $1.4bn.
The announcement coincided with Intel’s first-quarter earnings report, which showed revenue of $13.7bn but earnings per share of 42 cents, falling short of analysts’ expectations of 48 cents. Additionally, chief financial officer Stacy Smith will step down from his role after a replacement is found, moving to lead sales, manufacturing and operations.
