Intel Corporation to cut 12,000 positions globally

Intel Corporation is restructuring to accelerate its evolution from a PC company to one that powers the cloud and connected computing devices. In a bid to do so, the company will see a reduction of up to 12,000 positions globally — approximately 11% employees — by mid-2017.Intel expects the new restructuring program to deliver US$750 million in savings this year and annual run rate savings of US$1.4 billion by mid-2017. The company will record a one-time charge of approximately US$1.2 billion in the second quarter.According to the company this is through site consolidations worldwide and 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.The restructuring initiative was outlined in an e-mail from Intel CEO, Brian Krzanich, to Intel employees.Krzanich (pictured) said: “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. I am confident that we’ll emerge as a more productive company with broader reach and sharper execution.”“These are not changes I take lightly. We are saying goodbye to colleagues who have  played an important role in Intel’s success. We are deeply committed to helping our  employees through this transition and will do so with the utmost dignity and respect.”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.The data center and Internet of Things (IoT) businesses are Intel’s primary growth engines. These growth businesses delivered $2.2 billion in revenue growth last year, and made up 40% of revenue and the majority of operating profit, which largely offset the decline in the PC market segment.A+M has reached out to Intel for more comments on the APAC operations.