Intel restructures starting by employees: 11% by mid-2017

We talked in the day yesterday, anticipating some rumors: the news was confirmed to coincide with the publication of quarterly financial results. Intel announced an internal restructuring operation, aiming at its transformation from a traditional company engaged in the PC industry to one that is engaged in providing a calculation solution for the billions of connected and smart devices, as well as for the systems used in the world cloud.

One of the first actions of this new initiative is an intervention on personnel costs, with a planned reduction plan in the number of employees approximately 12,000 people globally to be implemented by mid-2017, approximately 11% of the total employee. Under the plan, within the next 60 days to employees who will be affected by this action will be provided with precise communications. The operation will be carried through by the output operations of a voluntary or not, as well as reorganization of internal programs.

In Intel's plans this will allow for a saving of expenditure of about 750 million US dollars over the course of 2016, and in the future of approximately $ 1.4 billion per year. During the second quarter of 2016, Intel will record an entry cost of about $ 1.2 billion linked to its staff reduction interventions.

In the company's statement interventions on the number of employed workers will go hand in hand with an increase in investments in products and technologies that will positively affect the future revenues, increasing the profitability of the mobile and PC industries. Intel indicates a willingness to increase the volume of investment in the data center, IoT, memory and connectivity products without neglecting areas of the world that are growing client such as 2-in-1 gaming world and the home gateway solutions.

Intel's transformation, and its desire to be less and less dependent on the traditional PC market as a historical business, then passes through an early intervention to reduce the number of employees: an ongoing strategy implemented in the past many times as a bit 'all IT organizations struggling with an internal reorganization. The will to continue investing in any case well defined and leaves room for future growth, which we believe will also rely on a recovery in the number of employees on a global basis.