Intel to Cut 12,000 Jobs--Update
April 19 2016 - 4:04PM
Dow Jones News
By Tess Stynes
Intel Corp. said it plans to reduce its global workforce by up
to 12,000 jobs, or 11% of its workforce, as the semiconductor giant
seeks to transition away from a computer-based company.
"These actions drive long-term change to further establish Intel
as the leader for the smart, connected world," Chief Executive
Brian Krzanich said in an email to employees. The chip maker had a
global workforce of 107,300 employees at the end of 2015, according
to a regulatory filing.
For decades, Intel has been the primary provider of chips for
personal computers. As PC sales have slowed, the chip maker has
focused more on providing the computing power for specialized chips
and server systems.
Intel said Tuesday that the job cuts are part of the company's
restructuring away from a computer-based company to one that powers
the cloud and billions of connected computing devices.
Intel also said its chief financial officer, Stacy Smith, will
transition to a new role leading sales, manufacturing and
operations, once the company identifies a successor for Mr. Smith,
a 28-year Intel veteran. The company has begun an executive search
that will include internal and external candidates.
The company announced the changes with its first-quarter
results, which included a worse-than-expected 7.2% increase in
first-quarter revenue.
Over all, Intel reported a profit of $2.05 billion, or 42 cents
a share, up from $1.99 billion, or 41 cents a share, a year
earlier. Excluding certain items, the company reported per-share
earnings of 54 cents. Analysts polled by Thomson Reuters expected
per-share profit of 48 cents.
Revenue increased to $13.7 billion from $12.78 billion. The
company expected $14 billion, plus or minus $500 million. Analysts
expected revenue of $13.83 billion.
For the second quarter, Intel projected revenue of $13.5
billion, plus or minus $500 million. Analysts polled by Thomson
Reuters expected revenue of $14.16 billion.
Shares of the Santa Clara, Calif., company recently fell 3.1% to
$30.60 in after-hours trading
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
April 19, 2016 16:49 ET (20:49 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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