Intel to Trim 12,000 Jobs, Largely Due to PC Sales Slump
Worldwide PC sales have slipped 10 percent in the last 12 months and continue to recede as companies such as Apple, Samsung and LG keep selling smartphones.The fact that more and more people around the world are now using smartphones for most of their personal and business communications instead of laptop and desktop PCs has been a cloud hanging over Intel for years. Now that cloud has begun to rain on the company, and to protect itself it's using layoffs as an umbrella. Worldwide PC sales have slipped 10 percent in the last 12 months and continue to recede as companies such as Apple, Samsung and LG keep selling smartphones with non-Intel chips—although those sales are also slowing down. eWEEK reported on April 19 that iPhone sales in Q1 2016 are down a stunning 43 percent. Perhaps this is a sign that users all have enough connected devices at this time.
All of this hits Intel, the world's largest PC processor maker, right in the gut. The Santa Clara, Calif.-based chip maker revealed April 19 that it will cut 12,000 jobs globally, or 11 percent of its 107,300-person workforce, as the company starts to move away from its longtime business of selling PC processors and gravitate toward developing other types of chips.