Apr 21, 2016 06:32 AM EDT
Intel to Cut Jobs; 12,000 Staffs' Future is Undetermined [VIDEO]
The giant computer chipmaker Intel is planning to cut its 12,000 staffs globally after failing to cope with the development in PC industry. The company will lay off employees as announced on Tuesday in a conference call according to the Wall Street Journal. Until the news release, Intel has not decided which members will be affected on the 2017 job cuts -leaving 11 percent of its staff with uncertain career future.
Intel's workforce has a team of 107,300 members working in various sectors. After dominating the digital world with its microprocessors, the tech company has to admit that PC might not be as popular as the mobile devices today.
After failing to reach its earning-expectation due to the sales drop in computing hardware sector; Intel finally announced the company's rapid shift.
The profit earned from PC business has impacted Intel's revenues. Thus, the company is reducing expenses by cutting jobs and investing more on hybrid devices like laptop-tablet and gaming sector - which is considered 'making more money'. Intel has also made revenue forecast that with the layoff being made, the company plans on saving up to $1.4 billion.
CNBC published an article on Intel CEO Brian Krzanich, stating that the company's restructured plan is to accelerate Intel's growth by working efficiently.
Krzanich added that the transformation will not neglect PC segment but rather, entering a business that has profitability, which is computer server. The chief executive refers to China's growing data center as 'on point'. Cloud computing, smartphones and other mobile devices will be the focus on chip supplies.
The NY Times also claimed that the tech bellwether's slashing jobs might have to do with Krzanich's decision back in 2013 where he said to expand the chip making. The 55-year-old expert officer has somehow predicted the future of his company as he has been recruiting executives from other firms.
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