Intel will cut 12 thousand jobs

American chip maker Intel will reduce its workforce by 12,000 worldwide by mid-2017 to deal with the challenges of the declining personal computer market. Intel’s workforce cuts of about 11 percent will accelerate its transformation from a PC company to a cloud and billions of smart connected devices company, the Santa Clara, California-based company said Tuesday.

According to news agency Xinhua, data centers and Internet of Things (IoT) have now become major sources of income for Intel instead of PC.

According to the company’s statement, new business has contributed 40 percent to the company’s income last year.

Intel has long been a major player in the PC chip world, but due to declining global demand for PCs, the company is now reducing its dependence on PCs and moving towards cloud, mobile and other computing devices.

The company expects to save $750 million this year by reducing its workforce and $1.4 billion annually after the cuts are completed by mid-2017.

The company has announced its first quarter results on Tuesday itself, in which the company’s income has increased from $ 12.78 billion to $ 13.7 billion, which is more than expected.