Trading was briefly halted on Intel ahead of earnings on news that it plans to cut 12,000 jobs, or 11% of its workforce. It will take a $1.2 billion charge as a result.
The release is here.
So it appears that an earlier report this week that Intel was planning layoffs of “thousands,” was correct.
But Intel beat on both earnings and revenue. Here are the reported numbers for Q1 2016.
- EPS (non-GAAP): $0.54 vs $0.49 expected.
- Revenue: $13.8 billion vs $13.984 expected.
Intel also announced that its CFO, Stacy Smith, will step down. A successor has not been named. Smith will move to a new roles leading sales and operations.
The company is in the middle of a revamp as it hopes to overcome a years-long slump in PC sales, and do a better job capitalising on the rise of mobile devices, which have typically been dominated by chips designed and built by rivals like ARM and Qualcomm.
The company’s latest big push has been into the “Internet of things” — basically, getting its chips into all sorts of household and common objects to let them communicate with each other and apps over networks, including the public Internet.
Recently, an executive that Intel hired from Qualcomm, Venkata “Murthy” Renduchintala, slammed the company in an internal memo, citing “lack of product/customer focus in execution that is creating schedule and competitiveness gaps in our products.”