Intel announces 12,000 job cuts in global restructuring initiative

Technology company layoffs of 11% of its staff comes as firm misses first-quarter expectations

Intel will cut up to 12,000 jobs globally by mid-2017, the company announced on Tuesday, equivalent to about 11% of the companys staff.

Employees found out about the initiative when they received an email from the companys chief executive, Brian Krzanich.

Our results over the last year demonstrate a strategy that is working and a solid foundation for growth. The opportunity now is to accelerate this momentum and build on our strengths, Krzanich wrote. These actions drive long-term change to further establish Intel as the leader for the smart, connected world. I am confident that well emerge as a more productive company with broader reach and sharper execution.

The reduction will involve a combination of voluntary and involuntary departures. Affected employees will be informed over the next 60 days. According to Intel, at the end of 2015, it had about 112,000 employees after it completed its acquisition of Altera, which was to be part of Intels programmable solutions group.

All reductions are expected to be completed by mid-2017 and are expected deliver $1.4bn in savings by that time.

The reduction in staff was announced at the same time as the company reported first-quarter revenue of $13.7bn. Earnings for the first quarter came in at 42 cents a share, below analysts expectations of 48 cents a share.

Additionally, Intels chief financial officer, Stacy Smith, will step down from his post after a replacement is found. Smith, who has been with Intel for 28 years, will then lead sales, manufacturing and operations.

We are excited to have Stacy take on this new role, leveraging the deep expertise and strong leadership skills that he has developed over his 28-year career at Intel, Krzanich said in a statement.

Read more: https://www.theguardian.com/technology/2016/apr/19/intel-job-cuts-global-restructuring