From PC World: Intel is evolving from a PC company to one that serves the cloud and connected devices—and it’s losing 12,000 jobs as a result.
News of impending layoffs usually accompanies a severe downturn, but that wasn’t really the case: Intel reported net income of $2.0 billion, flat compared to a year ago, as well a 7-percent bump in revenue to $13.7 billion. (Analysts, though, expected Intel to report $13.8 billion and profits of 47 cents per share, versus the 42 cents per share Intel reported.) Intel also reported a $1.2 billion charge for the restructuring.
The key, though, was that Intel’s revenue was seemingly driven by everything but the PC. Intel’s Client Computing Group reported revenue of $7.5 billion, down 14 percent sequentially.
Chief executive officer Brian Krzanich laid out the changes in a memo, which the company cited. “Our results over the last year demonstrate a strategy that is working and a solid foundation for growth,” said Krzanich. “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,” Krzanich added. “I am confident that we’ll emerge as a more productive company with broader reach and sharper execution.”
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