It appears that recent rumors were true as Intel has officially announced, what it calls, the major workforce restructuring, a move that will cut 11 percent of worldwide workforce over the next year.

Just ahead of its Q1 2016 financial report call, Intel has confirmed earlier rumors and announced that it will be cutting a significant amount of workforce in course of the next year. According to Intel, this is just a part of a larger restructuring effort in order to cope with the decline in PC market.

According to the announcement, Intel plans let around 12,000 people go, which is about 11 percent of the company's global workforce. The bulk of the planned cutting should happen within next 60 days while the rest should be finished by mid-2017. Intel did not reveal any details on specific departments that will be affected the most but most could come from the consumer/client part of the company.

Intel did note that the Datacenter and Internet of Things (IoT) businesses are companies primary growth engines, delivering US $2.2 billion in revenue growth last year and making up for 40 percent of the revenue, so it is unlikely that these two departments will be affected.

With this move, the company plans to save around US $750 million this year but will be hit by a one-time charge of US $1.2 billion in Q2, most likely for severance payments. Intel plans to save around US $1.4 billion per year after this.

The things are not looking bright for Intel or its employees as the weak PC market is taking a a hefty toll on them.



Source: Intel.com.