SAN FRANCISCO : Intel will cut up to 12,000 jobs worldwide as it seeks to shake up its business to reduce dependence on the slumping personal computer market, the US tech giant said Tuesday.
Known as the leading PC chip-maker, Intel has in recent years been looking to shift to mobile and emerging technologies such as health care, wearables and other connected devices.
The restructuring will eliminate about 11 percent of the Intel workforce by mid-2017 and aims to “accelerate evolution from a PC company to one that powers the cloud and billions of smart, connected computing devices,” the California group said in a statement.
“It is not a surprise,” NPD analyst Stephen Baker said of the swingeing job cuts at the California chip titan, which was founded in 1968.
“For everybody who has made their bed in old tech, trying to lie in it is pretty uncomfortable right now.”
Intel shares fell more than two percent in after-hours trade on the news to $30.90.
“Our results over the last year demonstrate a strategy that is working and a solid foundation for growth,” said chief executive Brian Krzanich.
“The opportunity now is to accelerate this momentum and build on our strengths.”