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Intel To Downsize With 12000 Jobs Cut

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Intel To Downsize With 12000 Jobs Cut

The PC market which had major contribution to INTEL's Revenue is now loosing its grip. The major revenue around 40% of the cumulative revenue of INTEL is now from data-center and I.O.T business, while the downward trend of revenue from PC businesses continues. Nearly 60% of INTEL's sales and profits is contributed from its microprocessor and chip business and any any changes in the PC business can damage Intel's bottom line.
Recently, INTEL announced that it will be laying off 12,000 jobs as its restructuring policy. This marks as reducing the head count by 11%. INTEL has reported a head count of 107,300 staff members at the end of the fiscal 2015 .

This announcement of 12,000 job cuts was reported at the same time as the company delared it's Q1-2016 call earnings report. The cumulative revenue reported was $13.7 billion. The client computing revenue is down by 14% sequentially, while it gained 2% year over year as compared to same tenure in last fiscal year. The Non-Volatile Memory Solutions witness sequential and Y-o-Y decline of 15% and 6% year-over-year, respectively. On the contrary, hardware giant's Internet of Things Group, reported healthy revenue of $651 (USD) million, up 4% sequentially and also gained 22% year over year as compared to same term last year. 

To leverage its bottom and top line, the microprocessor giant "INTEL Corpn" that ruled the mico processor market for decades has been focusing on diversification to stay as market leaders. The I.O.T ( Internet of Things) is the sunrise market with a billion dollar potential. As per market research companies, the I.O.T market is worth $661.74 billion USD by 2021. The I.o.T market is estimated to grow from $157.05 Billion USD in 2016 to $661.74 Billion USD by 2021, at a phenomenal compound annual growth rate (CAGR) of 33.3%. Such market size leveraged various tech companies to to grab a chunk of the mammoth market size and INTEL is one such companies that is now focusing on this market and is re-structuring its manpower to meet the challenges and potential of the new growth oriented market of I.O.T and wearables.

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