EMCC European Monitoring Centre on Change

Intel

Company/Organisation:
Intel

Geographic Location

Country: World
Location of affected unit(s): Worldwide

Company

Sector: Information / communication
IT and other information services
62.0 - Computer programming, consultancy and related activities
Number Employed: 107300

Employment Effects

Announcement Date: 19-04-2016
Planned Job Reductions min: 12000
Planned Job Reductions max: 12000
Type of Restructuring: Internal restructuring
Employment Effect Start: 19-04-2016
Foreseen End Date: 30-06-2017

Additional Information

Intel has announced job cuts of around 12000 staff by mid-2017, representing 11% of the company’s workforce. This will be made up of voluntary and involuntary redundancies, and is expected to save US$1.4 billion, half of which will be achieved this year. The cuts are as a result of falling PC sales, and instead the company will shift focus towards cloud computing and its data centre. Since the announcement, Intel shares have fallen by over three per cent despite rising profits, and by 13 per cent since the beginning of last year, as global PC shipments fell by 11.5% in the first quarter of 2016. Part of the cause of these losses is a deduplication of roles as a result of the US$16.7 billion acquisition of programming company Altera in January. Intel are mirroring wider changes in strategy in the industry, with both Microsoft and IBM moving away from PCs to other forms of computing.