- Business and Employment
The revenue boost, Intel still 12000 personnel cuts in the restructuring process
Financial statement quarter 1/2016 shows Intel has reached 13.7 billion us dollars revenue, net profit of 2.6 billion dollars and operating profit of 2 billion u.s. dollars in the quarter 1/2016. Revenues increased 7%, net profit increased 3% and giving predictions continue to increase throughout the year but Intel still proceed to cut 12000 personnel on a global scale, news about 11% of their employees from now until 2017. The reason? Intel wants to cut costs as well as restructured companies for further targets, focusing on the array is important to development.
According to information from Intel, they will focus on the products and technology related to data centers, Internet universe (IoT), memory and network components segment, the connected components, as well as help the partners develop the equipment plate 2 in 1 , game and family devices. In the last year, the data center array and iodine make up 40% of the sales of Intel, and on a stronger growth while the array of related to reduced computer processing chips, 22% increase compared to the IoT array to the same period last year.
With the cut 12000 employees, Intel is expected to save about 750 million dollars this year and 1.4 billion by mid-2017. However, they will have to pay about 1.2 billion dollars in quarter 2 for the cut. Maybe the cuts will come from these parts do not bring good business results.