Despite previously being focused on PCs, Intel Corp has announced that it will be undergoing restructuring to focus on the cloud and billions of smart, connected computing devices.
The tech giant cites that the data centre and Internet of Things (IoT) businesses, considered as its primary growth engines, delivered $2.2 billion in revenue growth last year, representing 40 per cent of revenue and the majority of operating profit which largely offset the decline in the PC market segment.
With the restructuring move, Intel intends to make the company more efficient and profitable by positioning itself in areas that is sees having long-term potential for leadership, customer value and growth
Intel plans to increase investments in its data centre, IoT, memory and connectivity businesses, as well as growing client segments such as 2-in-1s, gaming and home gateways. Also, part of the restructuring will be the reduction of up to 12,000 positions globally, or about 11 per cent of employees, by mid-2017. This will be through a combination of voluntary and involuntary departures and a re-evaluation of programs. Intel expects to deliver $750 million in savings this year and annual run rate savings of $1.4 billion by mid-2017. The company will record a one-time charge of about $1.2 billion in the second quarter.
"These actions drive long-term change to further establish Intel as the leader for the smart, connected world," said Intel's Brian Krzanich. "I am confident that we’ll emerge as a more productive company with broader reach and sharper execution.”
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