Intel To Cut Up To 12,000 Jobs Over Next Year

Intel (Euronext: INCO.NX - news) has said it will cut up to 12,000 jobs, more than 10% of its workforce, over the next year.

The restructuring, which the tech firm said will involve "voluntary and involuntary departures" around the world, is aimed at reducing its dependence on the slumping personal computer market.

The firm said the job cuts will save it $1.4bn (£972m) by the time they are completed next year. Most of the affected workers will be told within the next 60 days.

Intel, which is based in Santa Clara, California, is a leading supplier of computer chips, but PC sales have been steadily declining in recent years.

The company is trying to focus on its most profitable lines of business, including making processors for data centre computers and internet-connected gadgets.

"Our results over the last year demonstrate a strategy that is working and a solid foundation for growth," chief executive Brian Krzanich said.

"The opportunity now is to accelerate this momentum and build on our strengths.

"These actions drive long-term change to further establish Intel as the leader for the smart, connected world."

Intel made the announcement as it reported a modest 3% rise in first quarter profit to $2bn (£1.3bn), with revenues growing 7% to $13.7bn (£9.5bn).

"Our first-quarter results tell the story of Intel's ongoing strategic transformation, which is progressing well and will accelerate in 2016," Mr Krzanich said.

Mr Krzanich has spoken often about the shift in computing, and laid out his vision more than a year ago, telling the Consumer Electronics Show that the industry would be "unleashed" by wearable technology.

"So computing becomes unwired, and everything becomes smart and connected," he said at the time.