With Intel firing 12,000 people, which is equivalent to about 11% of all employees, what is the cause?

ByStargazer 2020

Intel revealed that it would dismiss 12,000 people, accounting for 11% of all employees. According to Intel, the large-scale dismissal of this time is a data center with growth prospectsIoTIt is to put more emphasis on related business. In contrast to the growing data center / IoT field, we also reveal the fact that poor business performance in the PC market has pulls the whole foot.

Intel Announces Restructuring Initiative to Accelerate Transformation | Intel Newsroom
https://newsroom.intel.com/news-releases/news-release-intel-announces-restructuring/


Intel cuts 12,000 jobs in wake of falling PC sales | The Verge
http://www.theverge.com/2016/4/19/11463302/intel-cuts-12000-jobs-in-wake-of-falling-pc-sales

With the opportunity of large-scale dismissal, Intel reveals that it will increase "investment in products and technology fields" to make profit more efficiently in the future. Specifically, we will increase investment in data center, IoT, memory related fields. Furthermore, it can be used as both a notebook PC and a tablet2 in 1The fields of terminals, gaming terminals, gateways, etc. seem to be growing, so it is revealing that this policy is "focus on profitable business".

In addition, despite the recruitment of voluntary retirees in this large-scale dismissal, the others seem to be voluntarily unemployed people selected by Intel side. A retirement recommendation will be made to the targeted employees within the next two months, and it is expected that large-scale dismissal will be completed at the latest by the middle of 2017. According to Intel, large-scale dismissal is expected to reduce expenses by 750 million dollars (about 82 billion yen) in fiscal 2016. "Large dismissal is intended to further solidify the standing position as a leader in a world connected by smart devices, and will bring long-term changes to Intel," said Brian Krasernic, CEO of Intel. doing.

According to Intel, it seems that the business related to "data center" and "IoT" that revealed to focus more on the future, raised 2.2 billion dollars (about 240 billion yen) in 2015. This amount accounts for about 40% of Intel's total revenue and it seems to be the majority of operating profit. Meanwhile, it is said that the slump in performance in the PC market that Intel has led to leads the whole business.

The poor performance in this PC market seems not to be a problem limited to Intel. A survey company that analyzes IT-related market dataGartnerAccording to data released by the company, the forecast for PC sales in 2016 is 0.68% year on year, down 284 million. On the other hand, the forecast for sales of smartphones is forecast that sales will increase by 7% in 2016 compared to the previous year, and 2.4 billion smartphones will be sold. Also, I am surprised that the number of shipments between smartphone and PC is about 10 times wider.


In addition, according to IDC Japan's mobile device market in Japan released in 2015 (smart phone · tablet · PC · communication data card etc), shipments in Japan in 2015 showed that domestic mobile device shipments decreased by 8.1% to 47.92 million units was. Among them, the total number of PCs and detachable tablets shipped is about 11.8 million units, and the shipment quantity of PC alone is estimated to be less than 10 million units in 2016.

In addition, the graph below shows the forecast of shipment volume of mobile device market by IDC Japan from 2016 to 2020. Despite the fact that there is no major change in PCs, the share of PCs in the mobile device market is steadily decreasing.