US chip maker Intel will cut 12,000 employees worldwide by mid-2017 to meet the challenges of a dwindling personal computer market. The Santa Clara, California-based company said Tuesday that a nearly 11 percent cut in Intel’s workforce will accelerate the process of transforming itself from a PC company to a cloud and billions of smart connected devices company.

According to the news agency Xinhua, data centers and Internet of Things (IoT) have now become major sources of income for Intel instead of PCs.

According to the company’s statement, new business contributed 40 per cent to the company’s revenue last year.

Intel has long been a leader in the PC chip world, but with declining global demand for PCs, the company is now reducing its reliance on PCs and moving to cloud, mobile and other computing devices.

The company expects to save $750 million this year by reducing the workforce and $1.4 billion annually after the cuts through mid-2017.

The company announced its first quarter results on Tuesday, in which the company’s income has increased from $ 12.78 billion to $13.7 billion, which is higher than estimates.

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