Intel Company intends cutting down 12000 jobs from its worldwide operation as part of their restructuring initiative and expect an annual savings of USD 750 million in 2016 said in a company news release.
The layoff would be 11% of its global workforce.
Intel CEO, Brian Krzanich has sent an E-mail to employees on the latest move by the company. “ I am confident that we will emerge as more productive company with broader reach and sharper execution” Krzanich has said in his e-mail.
Surprisingly this news of layoff came after the company declared its 2016 first quarter profit of USD 2.05 billion which was exceeded projected profit of USD 1.99 billion by the Analysts.
The company’s income has grown up to USD 13.7 billion up by 7% as off last year from 12.78 billion. With the cut down of 12000 jobs company expected to have an annual run rate savings of USD 1.4 billion by mid 2017.
Intel is and has been the largest computer chip maker in the world employed 107,300 staff members as of the end of last year. Intel has said that most of the employees affected by the layoffs will get to know about their future within next 60 days and some of the cuts may happen through mid 2017.
The company wants to invest in more ‘growing ‘areas in the future such as convertible tablet devices as well as gaming.
With the announcement of the layoffs move the company share dropped by 2%.
Although the company pitched this employee layoff as a restructuring process, certain financial experts say that it’s a result of bad management and employees had pay for it. The company bet heavenly on the stability of the PC business years ago and its microprocessors dominated the PC Industry. But the company has failed to replicate that success across mobile devices that have now replaced traditional desk tops and laptops.