Technology giant Intel has announced plans to cut 12,000 staff, comprising 11% of its total global workforce.
The company, which currently employs 107,300 staff, confirmed that the first set of employees to be laid off will be informed within the next 60 days, whilst further workforce cuts will take place throughout 2017.
In a statement, the company said that it was a “restructuring initiative to accelerate transformation,” with plans for further investment in “growing” areas of the business, such as gaming, notepads, and portable devices.
The move is expected to save Intel $750 million this year and $1.4 billion by the mid 2017 as part of the restructuring.
The company, which specializes in microprocessors, has struggled to replicate its success with mobile devices after a consumer shift away from traditional PC’s and laptops.
CEO Brian Krzanich announced the changes via email 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 we’ll emerge as a more productive company with broader reach and sharper execution.”
The layoffs come after Intel pledged a $300 million investment in diversity efforts in the tech industry in 2015.
Intel shares fell by 3% on the announcement.
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