Intel to slash up to 12,000 jobs

This is to pivot away from PC processor manufacturing and toward the "internet of things" and data center operations

Intel, the world's largest microprocessor maker, will shed up to 12,000 jobs worldwide in a massive restructuring effort to reduce its dependence on the personal computer market which is witnessing sluggish growth.

Intel employed about 107,300 staff members at the end of the last year.

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The restructuring will eliminate about 11% of the Intel workforce by mid-2017. Intel said most of the employees affected by the layoffs will be notified in the next 60 days.

Intelbet heavily on the stability of the PC business years ago, and its microprocessors have dominated the PC industry.

But the company has failed to replicate that success across mobile devices that have now replaced traditional desktops and laptops.

Nearly 60% of Intel's sales and profits came from its microprocessor and chip business, which means that any changes to the PC business have a big impact on Intel's bottom line.

The company says it expects to save $750 million this year and $1.4 billion by the middle of next year from the job cuts and related expense reductions.

At the same time, Intel said it plans to invest more in "growing" areas of its business, such as convertible laptop-tablet devices, as well as gaming.

"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," said Intel chief executive Brian Krzanich in a statement.

Intel's massive job cutting measureis all a part of the company's new strategy to pivot away from PC processor manufacturing and toward the "internet of things" and data center operations.

The layoffs, Intel says, will accelerate its evolution from a PC company providing processors for laptops and desktops, into a company that is more focused on cloud computing and data storage.

"I am confident we'll emerge as a more productive company with broader reach and sharper execution," said chief executive Brian Krzanich in an email to employees today.