A week after announcing that Intel would be cutting 11 percent of its total workforce – or 12,000 jobs – CEO Brian Krzanich has shared more insight into how these changes will position Intel in the changing tech landscape.
In a blog post on Tuesday, Krzanich said that investments in high-performance computing, big data and machine learning capabilities, the Internet of Things (with a focus on autonomous vehicles, industrial and retail), 5G connectivity, and more will help position the 48-year-old company as a leader in cloud, Internet of Things and modernized data centers.
“The data center and Internet of Things businesses are now Intel’s primary growth engines, and combined with memory and FPGAs, form and fuel a virtuous cycle of growth. Together, these businesses delivered $2.2 billion in revenue growth last year, made up 40 percent of our revenue, and the majority of our operating profit,” Krzanich said in an email to employees on Apr. 19.
Pink slips are already being delivered this week in California and Oregon, where 784 employees and 565 employees will be laid off, respectively, according to a report by The Oregonian. An Arizona manufacturing plant will also see layoffs this week, with 560 workers expected to be delivered the news.
The majority of the layoffs are expected to be over the next 60 days.
In his blog post, Krzanich outlined five core beliefs on which Intel has based its strategy:
- The cloud is the “most important trend” shaping the future.
- The connection to the cloud makes the “many ‘things’ that make up the PC Client business and the Internet of Things…much more valuable.”
- “Memory and programmable solutions such as FPGAs” will support new products for the data center and the Internet of Things.
- Access to the cloud will be driven by 5G connections.
- “Intel’s industry leadership of Moore’s Law remains intact, and you will see continued investment in capacity and R&D to ensure so.”