Intel to cut 12,000 jobs globally; CFO to move to new role | Reuters

Intel Corp ( INTC.O ) said it would cut 12,000 jobs globally, or 11 percent of its workforce, as the company moves away from its traditional business of selling chips used in personal computers. The company also said on Tuesday Chief Financial Officer Stacy Smith will move to a new role leading sales, manufacturing and operations. Intel said it would begin a formal search process for a successor.

Reuters April 20, 2016 03:45:12 IST
Intel to cut 12,000 jobs globally; CFO to move to new role
| Reuters

Intel to cut 12000 jobs globally CFO to move to new role
 Reuters

Intel Corp (INTC.O) said it would cut 12,000 jobs globally, or 11 percent of its workforce, as the company moves away from its traditional business of selling chips used in personal computers.

The company also said on Tuesday Chief Financial Officer Stacy Smith will move to a new role leading sales, manufacturing and operations. Intel said it would begin a formal search process for a successor.

The world's largest chipmaker also lowered its revenue forecast for the year. It now expects revenue to rise in mid-single digits, down from its previous forecast of mid- to high-single digits.

Intel's shares were down 2.6 percent at $30.78 in extended trading.

The Santa Clara, California-based company has been focussing on its higher-margin data centre business as it looks to reduce its dependence on the slowing PC market.

Global personal computer shipments fell 11.5 percent in the first quarter, IDC said on Monday. The research firm anticipates a relatively weak environment in the first half of 2016.

Intel said on Tuesday it would record a pretax restructuring charge of $1.2 billion in the second quarter. (bit.ly/1WDPfBm)

On a per share basis, the company earned 42 cents per share, in the first quarter, up from 41 cents a year earlier.

Net revenue rose to $13.70 billion from $12.78 billion.

Non-GAAP net revenue came in at $13.80 billion, compared with analysts' average estimate of $13.83 billion, according to Thomson Reuters I/B/E/S.

Up to Tuesday's close, Intel's shares had fallen 8.4 percent this year, compared with a slight gain in the broader semiconductor index .SOX.

(Reporting by Narottam Medhora in Bengaluru; Editing by Sriraj Kalluvila)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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