In a shocker, Intel has announced that it would cut down 12,000 work force shortly for what it called ‘restructuring to accelerate its transformation’.
“ We are cutting down 11 per cent of our work force worldwide. These are not changes we take lightly,” Intel CEO Brian Krzanich said in a call with analysts and reporters.
“Acting now enables us to increase our investments in areas that are critical for our future success. This is a comprehensive initiative. We will emerge as a more collaborative, productive company with broader reach,” he said.
In a statement Intel outlined the financial particulars of the decision:
Intel 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.
The majority of affected employees will be informed within 60 days with all the job reductions completed by mid-2017, according to the company.