Intel to lay off 11% of workforce - USA TODAY

SANTA CLARA, CA - JULY 20: A sign is posted at the Intel company headquarters on July 20, 2011 in Santa Clara, California.(Photo: Justin Sullivan)SAN FRANCISCO Intel will lay off 11% of its global workforce, up to 12,000 employees, as part of a restructuring initiative, the company said Tuesday.The Santa Clara, Calif.-based chip maker said the restructuring wouldaccelerate its evolution from a PC company to one focused on cloud computing andconnected devices.In an email to employees,CEO Brian Krzanich said that after the restructuring I am confident that well emerge as a more productive company with broader reach and sharper execution.Intel said it expects the layoffs to deliver $750 million in savings in 2016 year and an annual run rate savings of $1.4 billion by mid-2017. The company will record a one-time charge of approximately $1.2 billion in the second quarter, it said.Intel plans to focus on its data center and Internet of Things (IoT) businesses, which it called its primary growth engines, along with memory and field programmable gate arrays.The company had long made money from PCs, but sales have dropped precipitously in recent years, falling 10% in the first quarter.Growth in its new business areas made up 40% of the companys revenue in 2015, which helped offset the decline in PC sales, Intel said.Intel (INTC) shares fell 3.09% in after-hours trading on the news.Read or Share this story: http://usat.ly/1SrlvEV