Intel Corp. Chief Executive Officer Brian Krzanich is eliminating 12,000 jobs -- the chipmaker’s deepest cutbacks in a decade -- taking his most radical step yet to move Intel into new businesses and ease its dependence on the shrinking personal-computer market.
The world’s biggest semiconductor company said it’s shifting focus to higher-growth areas, such as chips for data center machines and Internet-connected devices, which so far aren’t contributing enough to make up for the decline in PCs. Intel posted disappointing first-quarter revenue and gave a second-quarter sales forecast that fell short of analysts’ estimates.
As PC shipments head for their fifth straight annual decline, Intel is finding it harder to offset that slump by leaning on booming demand for server chips and gains against weaker rival Advanced Micro Devices Inc. After bringing in new executives and shaking up his management team,
Krzanich’s 11 percent workforce reduction underscores his effort to decouple Intel’s future from the PC market and accelerate a push into new markets, such as chips for automotive, industrial and retail applications.