Intel to cut 12,000 jobs, forecast misses amid PC blight

Baku, April 20, AZERTAC

Intel Corp. will eliminate 12,000 jobs, or 11 percent of its workforce, embarking on the deepest cutbacks in a decade to gird for a fifth year of declines in the personal-computer market, according to Bloomberg.

The world’s biggest maker of semiconductors said it’s shifting focus to higher-growth areas, such as chips for data center machines and Internet-connected devices. Intel also posted disappointing first-quarter revenue and gave a second-quarter sales forecast that fell short of analysts’ estimates.

Shipments of PCs, a market that provides Intel with more than half of its sales, fell to their lowest level in a decade in the first three months of 2016. The depth and duration of the slump mean Intel can no longer fall back on booming demand for server chips or market-share gains against weaker rival Advanced Micro Devices Inc. The job cuts mark the most radical action yet by Chief Executive Officer Brian Krzanich, who has brought in new executives and shaken up his team as he works to reduce Intel’s dependence on PCs and rekindle growth by pushing into newer businesses.

“It’s acknowledging the reality that it’s a single-digit growth world,” said Michael Shinnick, a fund manager at Wasatch Advisors Inc., which owns Intel shares. “The end markets aren’t growing to the extent that they were.”

Adding to recent reshuffles among Intel’s leadership, Stacy Smith, who has been chief financial officer since 2007, will move to a new role as head of manufacturing and sales, the company said Tuesday in a statement.

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