Intel to cut 12,000 jobs as it confronts decline in PCs

Intel 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 giant said would involve “voluntary and involuntary departures” around the world, is aimed at reducing its dependence on the slumping personal computer market. The company 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.

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CEO Brian Krzanich

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,“ chief executive Brian 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.