Published in PC Hardware

PC Group hardest hit in Intel's 12,000 job cuts

by on20 May 2016


Software next target

Intel's restructuring axe seems to be falling on its PC client divsion and software areas with more than 12000 jobs to go.

Our well-placed sources are confident that the PC group will be the hardest hit. This is all because the PC market has stopped growing and Intel has to find its way to new markets to supplement loss of this business.

Latest research data from IDC indicates that in 2016 PC market will decline from 275.8 million units in 2015 to 260.8 million units in 2016 and the current projections for 2017 show the PC market slightly decreasing to 257.9 million units. At its peak PC market was at 364.0 million units, but this was in 2011 when things were rosier, kids were polite to their parents, and rock stars played decent music. These times are clearly behind us and Intel knows it.

IDC pc shipment forecast

The PC group downsize is being supervised by Dr. Venkata “Murthy” Renduchintala who is Intel's number two. He is the bloke who was paid $25 million dollars to defect from Qualcomm. Murthy has already done a high level clean up at PC client group and is believed to be thinking about dusting the top of the corporate bookshelf next.

Another team which will be pummeled is Rene James's old software outfit. People from software services and the security division formerly known as McAfee are expected to mostly go the same way as the artist formerly known as Prince.

Murthy's also wants to get Intel to the right course with IoT market. Marketing for that area is expected to grow from $655.8 billion in 2014 to $1.7 trillion in 2020. Intel wants the piece of that cake, and perhaps a few tea and biscuits to go with it and it will be interesting to look the fight in this promising land market.

There is still no killer app to help the IoT market which defines it. IoT right now is nothing and everything.

Last modified on 20 May 2016
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