Intel announces reorganization and deletes twelve jobs

Apr

20

2016

Intel will focus more on the market for data centers, internet of things, memory and FPGAs. This growth markets accounted in 2015 for 40 percent of sales. To be able to restructure Intel wants more profit in the future. Thereby lost twelve thousand jobs.

By deleting the jobs, about 11 percent of the staff to conserve globally, Intel thinks $ 750 million in 2016. Half 2017 have risen to $ 1.4 billion. With the reorganization , Intel will be plans to change from a traditional PC business to a company that controls the ‘cloud’ and ‘billions of smart devices, “put in gear.

Intel CEO Brian Krzanich, who is at the helm since 2013, has a letter written addressed to employees in which he explains the situation. He argues that in the next sixty days, most of the actions will be communicated. Some decisions regarding the reorganization are not made until 2017.

In early April, announced three people off the top of Intel already leaving. Of which, however, the rooms have a direct connection with the reorganization is not clear. Now it was announced that CFO Stacy Smith will play a different role within Intel. He will focus on production and sales. Who Intel’s new chief financial officer is not yet known.

The news coincides with the publication of the quarterly figures . Which are relatively good, because Intel booked in first-quarter 2016 revenue of $ 13.7 million. Which is seven percent more than in the same quarter a year ago. The profit amounted to $ 2 billion, three percent more than in 2015.

Intel took the quarter, most sales from the Client Computing Group: $ 7.5 billion, two percent more than a year ago. The Internet of Things Group made the biggest growth jump. Revenues amounted to $ 651 million, 22 percent more than last year.

Although Intel has a large market share can be found on the PC market, the company has no affiliation recent years the market for mobile devices. The PC market is shrinking and therefore wants to transform Intel to be able to remain profitable in the future. In recent years, Intel scrapped several times jobs. In 2015, 1,100 employees were laid off and in 2014 went it to 5000 jobs.

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