SANTA CLARA — Intel is slashing its global workforce by 12,000 jobs, or 11 percent of its employees, as the chip giant grapples with a dramatically shifting market for its products.
The workforce shocker is expected to save Intel $750 million this year and an estimated $1.4 billion annually by the middle of next year. Intel will take a $1.2 billion charge for the move in its next quarter.
“These are not changes I take lightly,” Intel CEO Brian Krzanich said in an email to employees. “We are saying goodbye to colleagues who have played an important role in Intel’s success.”
But that success is now challenged, as it is at many of Silicon Valley’s iconic but older tech giants, by the accelerating trend toward mobile devices and cloud computing. Intel’s cuts are the deepest since another valley legend, Hewlett-Packard, shed tens of thousands of jobs in a restructuring last year.
Analyst Betsy Van Hees with Wedbush said there probably will be more workforce trimming in the future.
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