Intel cutting 12,000 jobs from global workforce August 25, 2016 by Marques Fields Leave a Comment Intel Corporation, the world’s biggest maker of semiconductors, is planning to eliminate 12,000 jobs, or 11 percent of its workforce, while it shifts its focus to higher-growth areas, such as chips for data center machines and other gear related to cloud computing. The intended cuts are the result of the shrinking personal-computer market and the company’s failure to take advantage of the rapid transition to smart phones. Global sales of PCs have been declining for several years and the market that provides Intel with almost two-thirds of its revenue fell to its lowest level in a decade in the first three months of 2016, declining by 9.6 percent. Intel’s troubles reflect the reality that companies that may lead in one generation of computing may not make the technological leap to the next one. The job cuts will be Intel’s biggest layoffs since it reduced staffing between 2005 and 2009, in the face of the global financial crisis and increased competition. The new cuts will be accomplished through a combination of voluntary buyouts, layoffs, and consolidations of sites across the globe. Intel, which is headquartered in Santa Clara, California has manufacturing facilities in Oregon, Arizona, China, Mexico, Israel, and Ireland. The company aims to save $750 million this year, after the first 6,000 jobs are eliminated, with an annual savings of $1.4 billion by mid-2017, when the cuts to the company’s current workforce of 107,000 employees, end. Chief Executive Brian Krzanich said: “Our opportunity now is to accelerate our momentum and build on our strengths. We are evolving from a PC company to one that powers the cloud and billions of smart, connected computing devices.” As part of its push to bolster its cloud-computing serviced, Intel purchased chip maker Altera last year for $16.7 billion. Even so, the company could face competition from companies such as Qualcomm, which makes cheaper, albeit less powerful chips for cloud computing. Intel’s client computing group, which makes and sells PC chips, had first-quarter sales of $7.5 billion, a decline of 14 percent from the preceding three months, but a gain of 2 percent from the year-earlier period. The data center division posted sales of $4 billion, up 9 percent from a year earlier — falling short of Intel’s target of double-digit percentage growth in that unit. Overall, the company reported first quarter earnings of 42 cents per share and $13.7 billion in revenue, below the 48 cents per share and $13.8 billion in revenue estimated by analysts.