Intel is one of the largest companies in the computer industry, with offices and employees spanning around the globe. It is a behemoth of a company, and that’s both a benefit and a drawback. Because it has its hands in almost every facet of the computer industry, from processors to GPUs and SSDs, it typically has its claws inside markets that aren’t earning it bucket loads of money. For the 2017 financial year, Intel is working on restructuring the company to increase efficiency, and that means that some layoffs will be taking place.

The restructuring is driven by Intel concentrating on new markets that it can perform in, and exiting existing ones that it sees slower growth in. The big money is all in the Internet of Things (IoT) market, the production and design of FPGA products, and NAND products like Intel’s Optane and 3D Xpoint solid state drives. Intel’s still the bees’ knees when it comes to processors, but it must expand into other markets or risk being left behind by competitors who are moving into the same space. According to Intel CEO Brian Krzanich, about 11% of Intel’s workforce, which is almost 12,000 employees, will be let go as a result of the shifts in the company’s direction.

“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. I am confident that we’ll emerge as a more productive company with broader reach and sharper execution”, he added.

The result of the workforce reduction? A savings of about $750 million in 2016, with an annual savings of $1.4 billion by the end of 2017. This probably won’t affect any of Intel’s departments working on existing projects like desktop and mobile Core processors, or the introduction of their Optane-based SSD products, but a number of smaller projects will probably be killed off as a result of this move.

Source: Techpowerup