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Why I’m Sacking 12,000: Intel’s Krzanich Backs Cloud

Intel CEO Brian Krzanich has outlined new plans for the company in a post published in the chipmaker’s newsroom, detailing plans for Intel’s transformation “from a PC company to a company that powers the cloud and billions of smart, connected computing devices”.

The post follows the release of Intel’s shock first-quarter results last week, with Intel advising that it will cut up to 12,000 positions globally by mid-2017, as it looks to a future beyond PCs. That’s 11 percent of its workforce.

Krzanich – pictured –has listed “core beliefs” that he holds “to be undeniably true for the future”, to no-one’s great surprise listing cloud as the most important trend shaping that future. He said the Internet of Things will be made much more valuable by its connection to the cloud and 5G would become the key technology.

“Virtualisation and software are increasingly defining infrastructure in the cloud and datacentre,” Krzanich said, claiming that that Intel “will drive more and more of the footprint of the datacentre to Intel architecture”.

Krzanich said areas outside the PC business where it would now concentrate include datacentres, the Internet of Things – which Intel notes grew a claimed 22pc last year – memory and connectivity,

It won’t completely ignore the PC world. But the main areas in which Krzanich sees Intel playing in the future include two-in-one tablet hybrids, gaming PCs and home gateways, including TV set-top-boxes.

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