Intel plans to reduce its workforce across the globe by 11-percent; cutting some 12,000 jobs along the way. The corporate restructuring exercise is part of Intel’s plans to transform itself from a PC company to one that focuses on cloud computing and connected devices.
Data centres and the Internet-of-Things (IoT) are where Intel is currently growing, and the company is looking to capitalise on the two businesses. Some 40-percent of Intel’s profits last year came from data centres and IoT, and this share is expected to grow as PC sales continue to slump.
“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.”
The restructuring will also see several sites consolidated to reduce costs, which is partly responsible for the workforce reduction. Intel expects the exercise to last until mid-2017; although most of the workforce will be informed of their status within the next 60 days.
Country Manager for Intel Malaysia Sumner Lemon has said that there is nothing to announce on the matter for now.
Intel appears to be undergoing a transformation as it adapts to a changing market. The company has already abandoned its tick-tock development cycle, instead lengthening the amount of time an architecture will be in use. Moore’s law is also similarly looking like it is on its last legs; which may mean that the company will need to discover an entirely new guiding philosophy.
[Source: Intel Newsroom]