Intel has announced plans to lay off 12,000 staff, or 11 per cent of its workforce, as the company continues to suffer from falling PC sales.
Intel CEO Brian Krzanich announced the layoffs, which mark the most drastic change he has initiated since taking the reins in May 2013, during the company's first-quarter earnings call on Tuesday.
Krzanich announced that Intel's revenues fell short of expectations, and that 12,000 positions will be axed by mid-2017. This follows 5,300 job cuts announced in January 2014, which Intel also blamed on falling sales of desktop and laptop PCs.
Intel expects the programme to deliver $750m in savings in 2016 but noted that the firm will take a $1.2bn charge as a result of the restructuring.
"Our results over the last year demonstrate a strategy that is working and a solid foundation for growth," Krzanich said.
"The opportunity now is to accelerate this momentum and build on our strengths. These actions drive long-term change to further establish Intel as the leader for the smart, connected world.
"I am confident that we’ll emerge as a more productive company with broader reach and sharper execution."
The layoffs come as Intel looks to reposition itself from a PC-first company to one that focuses on cloud computing and the Internet of Things (IoT).
Intel will increase investment in these areas, along with its memory, connectivity, 2-in-1 and gaming businesses, to offset the dent left by tumbling PC sales.
The company's computing business saw revenues of $7.5bn in Q1, a two per cent increase year on year, while data centre and IoT business saw an increase in revenues of nine per cent and 22 per cent respectively compared with 2015.
Intel's overall Q1 revenue came in at $13.7bn, up seven per cent on last year. Profits were bigger than expected at $2.6bn for the three-month period.
IBM and Technical University of Munich team demonstrate how Shor's algorithm, which can't be cracked by conventional computers, can be solved quickly with quantum computing
Hubble Space Telescope finds superflares from young red dwarfs could strip away planetary atmosphere
Younger stars are 100 to 1,000 times more energetic than when they're older
Two of the big four supermarkets will use the system to control sales of restricted products
PUBG news and updates: November's Update #23 to bring new Skorpion pistol and changes to blue zone visibility
Genuinely useful side-arm coming to PUBG in Update #23