Even though Intel has a dominant position in the market for PC processors with its main competitor, AMD, in low hours, the widespread decline of sales suffered by the domestic PC has made them consider another strategy where more resources will be allocated to other divisions such as the IoT or data centers while making more efficient the division of PC processors
The first major injury of this change in strategy is the layoff of 12,000 workers that will have to leave Intel during the next year. These 12,000 workers account for an 11% of the blue giant’s workforce.
With this move, Intel is expected to achieve savings of 1,400 million dollars a year along with a plan to make the company more efficient and with more total benefits.
Although the financial results presented today by the company for the first quarter of this year reveal a profit of 13,000 million dollars, the division of domestic processors have seen their incomes fallen by 14%. On the other hand, the division of the IoT and data centers have grown and become source of 40% of the profits.