Intel to cut 12,000 jobs worldwide as focus shifts to cloud

As technology shifts toward the cloud and away from hardware devices, technology companies have to make some drastic changes. For its part, Intel plans to cut 11 percent of its global workforce — approximately 12,000 jobs — to help facilitate a transition to a renewed focus on new technologies, reports Wall Street Journal.

Intel, known for producing semiconductors, has faced financial pressures as personal computers have fallen out of favor as mobile devices and cloud computing have taken over.

"They've looked at the decline of the PC market and clearly decided that they are going to put most of their effort elsewhere," Rob Enderle, president and principal analyst of market research company Enderle Group, told WSJ.

In an email to employees, Intel CEO Brian Krzanich said this "restructuring initiative" will allow the company to double down on investments where there is more opportunity to grow.

"[The] announcement is about accelerating our growth strategy. And it's about driving long-term change to further establish Intel as the leader for the smart, connected world," Mr. Krzanich wrote in the email. "As we drive this transformation, there is extraordinary opportunity ahead. We will emerge as a more productive company with broader reach, and sharper execution."

The workforce reduction will include both voluntary and involuntary departures. While most departures will be communicated in the next 60 days, the process will span into 2017, according to the email.

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