SANTA CLARA, Calif., April 19, 2016 Intel Corporation today announced a restructuring initiative to accelerate its evolution from a PC company to one that powers the cloud and billions of smart, connected computing devices. Intel will intensify its focus in high-growth areas where it is positioned for long-term leadership, customer value and growth, while making the company more efficient and profitable.

The data center and Internet of Things (IoT) businesses are Intels primary growth engines, with memory and field programmable gate arrays (FPGAs) accelerating these opportunities fueling a virtuous cycle of growth for the company. These growth businesses delivered $2.2 billion in revenue growth last year, and made up 40 percent of revenue and the majority of operating profit, which largely offset the decline in the PC market segment.

The restructuring initiative was outlined in an e-mail from Intel CEO Brian Krzanich to Intel employees.

Our results over the last year demonstrate a strategy that is working and a solid foundation for growth, said Krzanich. 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, he added. I am confident that well emerge as a more productive company with broader reach and sharper execution.

Read Brian Krzanichs email to Intel employees (PDF)

While making the company more efficient, Intel plans to increase investments in the products and technologies that that will fuel revenue growth, and drive more profitable mobile and PC businesses. Through this comprehensive initiative, the company plans to increase investments in its data center, IoT, memory and connectivity businesses, as well as growing client segments such as 2-in-1s, gaming and home gateways.

These changes will result in the reduction of up to 12,000 positions globally approximately nd annual run rate savings of $1.4 billion by mid-2017. The company will record a one-time charge of approximately $1.2 billion in the second quarter.

Webcast

Intel also announced first-quarter 2016 earnings today. The company will discuss the restructuring initiative during the earnings webcast scheduled today at 2:00 pm PDT on itsInvestor Relations website at www.intc.com. A webcast replay and audio download will also be available on the site.