\n\tIntel Corp., Santa Clara, Calif., announces a restructuring initiative to accelerate its evolution from a PC company to one that powers the cloud and billions of smart, connected computing devices. Intel will intensify its focus in high-growth areas where it is positioned for long-term leadership, customer value and growth, while making the company more efficient and profitable. <\/p>\n
\n\tThe data center and Internet of Things (IoT) businesses are Intel’s primary growth engines, with memory and field programmable gate arrays (FPGAs) accelerating these opportunities \u2013 fueling a virtuous cycle of growth for the company. These growth businesses delivered $2.2 billion in revenue growth last year, and made up 40% of revenue and the majority of operating profit, which largely offset the decline in the PC market segment.<\/p>\n
\n\tThe restructuring initiative was outlined in an e-mail from Intel CEO Brian Krzanich to Intel employees.<\/p>\n
\n\t“Our results over the last year demonstrate a strategy that is working and a solid foundation for growth,” said Krzanich. “The opportunity now is to accelerate this momentum and build on our strengths.<\/p>\n
\n\tWhile making the company more efficient, Intel plans to increase investments in the products and technologies that that will fuel revenue growth, and drive more profitable mobile and PC businesses. Through this comprehensive initiative, the company plans to increase investments in its data center, IoT, memory and connectivity businesses, as well as growing client segments such as 2-in-1s, gaming and home gateways.<\/p>\n
\n\tThese changes will result in the reduction of up to 12,000 positions globally \u2014 approximately 11 percent of employees \u2014 by mid-2017 through site consolidations worldwide, a combination of voluntary and involuntary departures, and a re-evaluation of programs. The majority of these actions will be communicated to affected employees over the next 60 days with some actions spanning in to 2017.<\/p>\n
\n\tIntel expects the program to deliver $750 million in savings this year and annual run rate savings of $1.4 billion by mid-2017. The company will record a one-time charge of approximately $1.2 billion in the second quarter.<\/p>\n