Intel to cut 12,000 jobs as it confronts decline in PCs

SAN FRANCISCO (AP) — Intel is cutting 12,000 jobs – about 11 percent of its workforce – as it reorganizes to confront a decline in sales of personal computers.

The giant chipmaker made the announcement today as it reported lower-than-expected sales for the first quarter. This as industry analysts say an extended slide in global PC sales is showing no signs of leveling off.

Intel, which has long been the world's leading maker of PC chips, is now trying to expand into other types of computing.

"It's time to make this transition," CEO Brian Krzanich told analysts. While calling the job cuts "difficult," he said they would help the company sharpen its focus in new areas.

The latest cuts follow an earlier reduction of about 5,000 jobs announced by Intel in 2014, and analysts say they may not be the last.