Intel to Cut 12,000 Jobs

Intel Corp. said it plans to reduce its global workforce by up to 12,000 jobs as the semiconductor giant reported a worse-than-expected 7% increase in first-quarter revenue.

The chip maker had a global workforce of 107,300 employees at the end of 2015, according to a regulatory filing.

Intel said the job cuts are part of the company's restructuring away from a computer-based company to one that powers the cloud and billions of connected computing devices.

Over all, Intel reported a profit of $2.05 billion, or 42 cents a share, up from $1.99 billion, or 41 cents a share, a year earlier. Excluding certain items, the company reported per-share earnings of 54 cents. Analysts polled by Thomson Reuters expected per-share profit of 48 cents.

Revenue increased to $13.7 billion from $12.78 billion. The company expected $14 billion, plus or minus $500 million. Analysts expected revenue of $13.83 billion,

For the second quarter, Intel projected revenue of $13.5 billion, plus or minus $500 million. Analysts polled by Thomson Reuters expected revenue of $14.16 billion.

Shares of the Santa Clara, Calif., company were halted in after-hours trading.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

April 19, 2016 16:35 ET (20:35 GMT)

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