Intel Announces Retirement Plan

The tech giant Intel deciding to close several of its sites, kill some of its products, and lay off 12,000 workers due to the steady decline in its PC sales, as it shows the sign of poor management.

Intel Announces Retirement Plan

TThe giant chip maker manufacturer Intel announced few days ago a massive plan of restructuring. The steady decline in PC sales caused the company to adopt a new philosophy, rethinking their way of business.

CEO Brian Krzanich, who took over 3 years ago, recently communicated to all employees through an e-mail on the situation of the firm, as the CEO Brian Krzanich stated: “I am confident that we’ll emerge as a more productive company with broader reach and sharper execution”. As he stressed his efforts to transform the company , “a company to PCs” for dealing with smart devices and connectivity in the cloud, areas that yielded a nearly $ 2.2 billion profit for the past year the firm (40% of total income).

The chief executive Brian Krzanich said on a conference call Tuesday with investment analysts that the company is looking hard at shutting down product lines that aren’t performing or don’t fit with a new strategy focused on data centers and smart devices. “‘Murthy,’ who we’ve brought into the company, is doing a complete review of all of our products, and he’s going to report back to me in the near future and give me a proposal for what those look like,”.

This initiative led to Intel decided the dismissal of about 12,000 employees who would be in “redundant” positions, not counting the various position offsets, both voluntary and involuntary.

All these changes will cost millions of dollars, most of which must be invested in paying insurance and labor rights for those who have been laid off and the closing of several offices and factories. Despite all expenses, the manufacturer is confident and expects its new business income you a savings of about $ 750 million this year.