Intel To Reduce Approx. 11% Of Its Employees; Announces CFO Succession Plan

(RTTNews) - Intel Corp. (INTC) announced a restructuring initiative to accelerate its evolution from a PC company to one that powers the cloud and billions of smart, connected computing devices. The changes will result in the reduction of up to 12,000 positions globally, or approximately 11 percent of its employees, by mid-2017 through site consolidations worldwide. Intel expects the program to deliver $750 million in savings in the current 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.

Intel said the data center and Internet of Things businesses are the company's primary growth engines. 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.

Intel also announced the current CFO, Smith, will transition to a new role, leading sales, manufacturing and operations once his successor is in place. The company said it is beginning a formal search process for a new CFO.