The giant chipmaker manufacturer Intel announced a massive restructuring plan a few days ago. The steady decline in PC sales caused the company to adopt a new philosophy, rethinking its business.
CEO Brian Krzanich, who took over 3 years ago, recently communicated to all employees through an e-mail on the firm’s situation, as CEO Brian Krzanich stated: “I am confident that we’ll emerge as a more productive company with a broader reach and sharper execution”.
Intel Announces Retirement Plan
As he stressed his efforts to transform the company, “a company to PCs” for dealing with smart devices and connectivity in the cloud, areas that yielded a nearly $ 2.2 billion profit for the past year of the firm (40% of total income).
The chief executive Brian Krzanich said on a conference call Tuesday with investment analysts that the company is looking hard at shutting down product lines that aren’t performing or don’t fit with a new strategy focused on data centers and smart devices.
“‘Murthy,’ who we’ve brought into the company, is doing a complete review of all of our products, and he’s going to report back to me in the near future and give me a proposal for what those look like,”.
This initiative led to Intel’s decision to dismiss about 12,000 employees who would be in “redundant” positions, not counting the various voluntary and involuntary position offsets.
All these changes will cost millions of dollars, most of which must be invested in paying insurance and labor rights for those laid off and closing several offices and factories. Despite all expenses, the manufacturer is confident and expects its new business income you a savings of about $ 750 million this year.