Intel will cut 12,000 jobs

US chipmaker Intel will cut its worldwide workforce by 12,000 by mid-2017 to meet challenges from a shrinking personal computer market.The Santa Clara, California-based company said on Tuesday that the nearly 11 per cent reduction in Intel’s workforce will accelerate its transformation from a PC company to a cloud and billions of smart connected devices company.

According to news agency Xinhua, data centers and Internet of Things (IoT) have now become major sources of revenue for Intel instead of PCs.

According to the company’s statement, new business contributed 40 per cent to the company’s revenue last year.

Intel has long been a major player in the PC chip world, but as global demand for PCs has waned, the company is reducing its reliance on PCs and moving toward cloud, mobile and other computing devices.

The company expects to save $750 million this year by reducing its workforce, and $1.4 billion annually after the cuts are completed by mid-2017.

The company announced its first quarter results on Tuesday, in which the company’s income was reported to have increased from $12.78 billion to $13.7 billion, which is more than the estimates.