Intel is about to wipe out 11% of its global workforce or about 12,000 workers, the company announced on Tuesday.
As of the end of 2015 Intel employed about 107,300 staff members.
While Intel’s microprocessors dominated the PC industry, the company was slow to move into the mobile space.
Nearly 60% of Intel’s sales and profits came from its microprocessor and chip business, which means that any changes to the PC business have a big impact on Intel’s bottom line.
The company says it expects to save $750 million this year and $1.4 billion by the middle of next year from the job cuts and other related expense reductions.
The company says it plans to invest more heavily in convertible laptop-tablet devices, as well as gaming.
The company also recently said it will invest more in data centers and its Internet of Things business.
Shares of Intel were down about 3% on the report.
Intel reported $13.7 billion in sales last quarter, up 7% from last year, and profits of $2 billion, up 3%.
The company’s Internet of Things group reported 22% growth to $651 million, while the data center division logged a 9% increase to $4 billion.