As part of the company's move to diversify its growth areas, Intel is cutting 12,000 or 11 percent of its jobs worldwide, taking about $1.2 billion charge as a result.
Intel is looking to diversify from PCs into growth areas of IoT and servers, ComputerWorld reports. In addition, they are studying the possibility of fusing work locations worldwide in hopes to save at least US $750 million by the end of the year.
IDC revealed that the slowing of PC shipments has had a great impact on Intel's chip business. For the first quarter of this year, the company saw an 11.6 percent decrease when compared to the same period a year ago. PC shipments around the world equalled to only 60.6 million units.
Moving forward, Intel will focus on data center equipment with the hopes that it will generate a large part of Intel's profits and potentially make up for the declines in the PC market.
"Growth drivers will include memory and field-programmable gate array (FPGA) technology, which the company added from its recent $16.7 billion acquisition of Altera," CEO Brian Krzanich said.
In terms of earnings and revenue for the first quarter of this year, Business Insider reports that the company has a total revenue of $13.80 billion, including a $99 million deferred revenue write down. The projected revenue for the said quarter is set at $13.84 billion.
Furthermore, Intel set its revenue expectations for the second quarter at around $13.5 billion.
"The company is in the middle of a revamp as it hopes to overcome a years-long slump in PC sales and do a better job capitalizing on the rise of mobile devices, which have typically been dominated by chips designed and built by rivals, like ARM and Qualcomm," the Business Insider report states.
On other news, the company's CFO, Stacy Smith, is announced to be stepping down and will be moving to a news role. She will be leading the sales and operations. A successor has not been named.
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