Intel Corporation announced a restructuring initiative that will result in job losses for 560 people in Chandler. The company is planning reduction of up to 12,000 positions globally — approximately 11 percent of employees.
The cuts are to be complete by mid-2017 “through site consolidations worldwide, a combination of voluntary and involuntary departures, and a re-evaluation of programs. The majority of these actions will be communicated to affected employees over the next 60 days with some actions spanning in to 2017,” acording to the company’s press release.
Both the Intel Chandler site and the Intel Ocotillo site will suffer losses. The company will lay off 312 at the Intel Chandler site and 248 at the Intel Ocotillo site.
Intel expects to save $750 million this year and annual run rate savings of $1.4 billion by mid-2017. The company will record a one-time charge of approximately $1.2 billion in the second quarter.
On April 19, 2016 Intel Corporation reported first-quarter GAAP revenue of $13.7 billion, operating income of $2.6 billion, net income of $2.0 billion and EPS of 42 cents. Intel reported non-GAAP revenue of $13.8 billion, operating income of $3.3 billion, net income of $2.6 billion and EPS of 54 cents. The company generated approximately $4.0 billion in cash from operations, paid dividends of $1.2 billion, and used $793 million to repurchase 27 million shares of stock.
Q1 Key Business Unit Trends:
•Client Computing Group revenue of $7.5 billion, down 14 percent sequentially and up 2 percent year-over-year
•Data Center Group revenue of $4.0 billion, down 7 percent sequentially and up 9 percent year-over-year
•Internet of Things Group revenue of $651 million, up 4 percent sequentially and up 22 percent year-over-year
•Non-Volatile Memory Solutions Group revenue of $557 million, down 15 percent sequentially and down 6 percent year-over-year
•Intel Security Group revenue of $537 million, up 5 percent sequentially and up 12 percent year-over-year
•Programmable Solutions Group revenue of $359 million, which does not include $99 million of revenue as a result of acquisition-related adjustments.