Intel to Cut 12,000 Jobs by 2017

Intel is one of the biggest companies of the Internet age, until 2005 anyway. Since the 1990s, many people have associated the company with up-and-coming technology, however, the company is not going to continue to lead the world’s technology market for much longer. In fact, Intel just announced that it would lay off 12,000 employees by 2017.

In 2005, the company made one of the biggest mistakes ever when Intel declined the opportunity to provide the processor for the iPhone. Intel didn’t believe the iPhone would sell enough to benefit from providing the processor for the phone. Now, of course, people know that making the decision to work with Apple on the iPhone would have been a good business decision. It could have been the deal that made all the difference and Intel may not be laying off 12,000 employees to cut back on spending.

By laying off 12,000 employees, Intel will essentially be getting rid of 11 percent of its employee base throughout the world. However, in the midst of declining PC sales, the company doesn’t have much of a choice.

The company has been way too reliant on the declining PC sales, which makes up about 66 percent of the company’s revenue. The company obviously missed out on a game-changing deal when it missed out on a partnership with Apple on the iPhone.

Intel is in the process of trying to rebrand itself. The company is set on trying to focus its efforts on a cloud service and smart devices, but this will require a significant layoff of its employees, according to a recent report. Intel officials say that the cuts in labor will save the company $750 million this year and $1.4 billion by mid-2017.

However, the company seems to still be making a significant profit. It just announced a $2 billion profit for first quarter. While the company may not be in big trouble yet, it will be soon enough with no ties to smartphones or the processors in the phones.

“While 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,” Intel said in a statement. “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.These changes will result in the reduction of up to 12,000 positions globally.”

The company has not yet revealed where the cuts will be made, however, they have explained how the layoffs will work. If you have been with the company for a long time or you have performed poorly at work in recent years, you may be offered a buyout. Anyone receiving a buyout will know by April 25.

Other than stating that it wanted to focus on PCS, the company has not given any indication on which jobs would be cut. However, the first band of layoffs should be notified by end-of-day on Monday.

Photo: Flickr: Aaron Fulkerson