Intel will use $1.2 billion to slash 12,000 job worldwide, 11 percent of its workforce, the company announced on April 19.
Stacy Smith, the tech company’s chief financial officer will also leave his post. Smith will be leading sales, manufacturing, and operations once his successor is in place, said the company.
Intel is the largest processor chip manufacturing company in the world.
Intel said it is restructuring to transform from a “PC company to one that powers the cloud and billions of smart, connected computing devices.”
“These actions drive long-term change to further establish Intel as the leader for the smart, connected world,” CEO Brian Krzanich said about the restructuring. “I am confident that we’ll emerge as a more productive company with broader reach and sharper execution.”
Regarding the layoffs, Krzanich said, “These are not changes I take lightly. We are saying goodbye to colleagues who have played an important role in Intel’s success.”
“We are deeply committed to helping our employees through this transition and will do so with the utmost dignity and respect,” Krzanich said an email to employees, which was posted on the company’s website.
The company said most of the 12,000 employees will be let go over the next 60 days, but with some staying until 2017. Intel will use $1.2 billion for the restructuring.
The 2016 first quarter report shows the company has slumped in revenue compared to last year.