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Intel to Cut 12,000 Jobs, Forecast Misses Amid PC Blight

Ian King, reporting for Bloomberg:

Intel Corp. will eliminate 12,000 jobs, or 11 percent of its workforce, embarking on the deepest cutbacks in a decade to gird for a fifth year of declines in the personal-computer market.

The world’s biggest maker of semiconductors said it’s shifting focus to higher-growth areas, such as chips for data center machines and Internet-connected devices. Intel also posted disappointing first-quarter revenue and gave a second-quarter sales forecast that fell short of analysts’ estimates.

Shipments of PCs, a market that provides Intel with more than half of its sales, fell to their lowest level in a decade in the first three months of 2016.

Intel’s decline has been rapid. They missed the boat on the mobile revolution. Microsoft — Intel’s partner during the go-go “Wintel” years — has missed the mobile boat, too, but has thrived by diversifying into areas such as cloud services. Intel can only thrive by selling chips, and they still don’t make the chips that device makers want for mobile devices.

I’m not counting them out yet, but this is ominous. Intel needs something new, because PCs have entered a permanent decline.

Wednesday, 20 April 2016