The PC market is in bad shape and even Intel is beginning its exit strategy with plans to fire 12,000 employees as part of a bold restructuring.
The processor maker announced its plans to lay-off 11% of its global workforce by 2017 in a bid to refocus its efforts in internet of things technology and the connected computing space. In the corporation's first quarter earnings, the company revealed the IoT segment lead to a $2.2 billion increase in Intel's revenue.
Connected computing not only helped Intel turn a profit last year, it's also beginning to become the majority of what Intel works in. The corporation also revealed IoT technologies makes up 40% of the company's entire revenue pool as it attempts to offset the decline in the PC market segment.
Intel has steadily diversifying itself and last year it introduced new chipsets embedded in smartwatches like the Tag Heuer Connected and Fossil's first Android wearables. Intel is likely not to drop out of the PC game but the company plans to evolve, shifting from a solely "PC[-oriented] company to one that powers the cloud and billions of smart, connected computing devices."
While this is a smart move for Intel at large, our thoughts are with those affected.