Intel Corp. to cut 11% of workforce, reports better-than-expected earnings

Intel Corp. said late Tuesday it will lay off 12,000 employees, or about 11% of its workforce, saying in a statement the restructuring is aimed "to speed its transition to a company that powers the cloud." The layoffs will occur through mid-2017 through consolidation worldwide, a combination of voluntary and involuntary departures, and a re-evaluation of programs, the chipmaker said. Separately, Intel reported first-quarter earnings that beat Wall Street expectations. The company said it earned $2 billion, or 42 cents a share, in the quarter. Adjusted for one-time items, Intel earned $2.6 billion, or 54 cents a share, compared with 45 cents a share in the year-ago period. Revenue hit $13.8 billion in the quarter, up from $12.8 billion a year ago. Analysts polled by FactSet had expected the company to report adjusted earnings of 47 cents a share on sales of $13.73 billion. Intel also announced that Chief Financial Officer Stacy Smith will "transition to a new role," leading sales, manufacturing and operations once a successor is in place. Smith will remain CFO until then, the company said. Shares were halted in late trading, and ended the trading day down 0.2%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.