Intel just announced they'll fire a bunch of people by mid 2017 - press release

[zMeul]

 

source: https://newsroom.intel.com/news-releases/news-release-intel-announces-restructuring/

Brian Krzanich's (CEO) letter to Intel's employees: https://newsroom.intel.com/newsroom/wp-content/uploads/sites/11/2016/04/krzanich-restructuring-memo.pdf

 

Quote

SANTA CLARA, Calif., April 19, 2016 – Intel Corporation today announced a restructuring initiative to accelerate its evolution from a PC company to one that powers the cloud and billions of smart, connected computing devices. Intel will intensify its focus in high-growth areas where it is positioned for long-term leadership, customer value and growth, while making the company more efficient and profitable.

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.

The restructuring initiative was outlined in an e-mail from Intel CEO Brian Krzanich to Intel employees.

“Our results over the last year demonstrate a strategy that is working and a solid foundation for growth,” said Krzanich. “The opportunity now is to accelerate this momentum and build on our strengths.

“These actions drive long-term change to further establish Intel as the leader for the smart, connected world,” he added. “I am confident that we’ll emerge as a more productive company with broader reach and sharper execution.”

 

While making the company more efficient, Intel plans to increase investments in the products and technologies that that will fuel revenue growth, and drive more profitable mobile and PC businesses. Through this comprehensive initiative, the company plans to increase investments in its data center, IoT, memory and connectivity businesses, as well as growing client segments such as 2-in-1s, gaming and home gateways.

These changes will result in the reduction of up to 12,000 positions globally — approximately 11 percent of employees — by mid-2017 through site consolidations worldwide, a combination of voluntary and involuntary departures, and a re-evaluation of programs. The majority of these actions will be communicated to affected employees over the next 60 days with some actions spanning in to 2017.

Intel expects the program to deliver $750 million in savings this year and annual run rate savings of $1.4 billion by mid-2017. The company will record a one-time charge of approximately $1.2 billion in the second quarter.

the news arrives just before Intel holding their 2016 Q1 earnings call

 

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the news isn't exactly "news" .. as there were a bunch of speculations circulating around for couple of days ago - someone wasn't pleased I guess

 

at the end of 2015, Intel, had 107300 employees - by this time next year, Intel will drop to ~95000

that's some serious cut in work force

 

we have confirmation, with grimm evidence, that the PC market isn't doing so well after all

[Djole123]

Repost:

 

 

[zMeul]

13 minutes ago, Djole123 said:

Repost:

 

 

I was editing it when he posted, didn't knew ..

 

maybe the mods will merge the two threads instead of locking it, as this contains the actual press release