Intel To Cut 12,000 Jobs, 11% Of Its Workforce, In Restructuring Effort

Intel Corporation INTC released its Q1 earnings report this afternoon, and had some interesting news for employees and investors alike: The company will reduce its workforce by 11 percent over the next year, which equates to about 12,000 jobs.

In the release, Intel said it sees the restructuring program delivering $750 million in savings this year, and annual run-rate savings of $1.4 billion by mid-2017. The company will take a $1.2 billion one-time charge in Q2.

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Regarding the chip maker's earnings, revenue came in a tick below estimates at $13.8 billion. Adjusted earnings of $0.54 per share beat the $0.47 estimate. The company also cut full year margin guidance by a percentage point as it now sees 62 percent down. The tech giant sees Q2 sales of $13-$14 billion vs. $14.61 billion estimates.

Intel stock closed at $31.60, before being halted as the market came to a close. It resumed trading at 4:20 p.m. ET, recently down 3.3 percent at $30.55 in the after-hours session.