Intel Corp said it would cut 12,000 jobs globally, or 11 percent of its workforce, as the company moves away from its traditional business of selling chips used in personal computers.
The company also said on Tuesday Chief Financial Officer Stacy Smith will move to a new role leading sales, manufacturing and operations. Intel said it would begin a formal search process for a successor.
Intel's shares were down 2.5 percent in extended trading.
The company said it would record a pretax restructuring charge of $1.2 billion in the second quarter. (bit.ly/1WDPfBm)
Check out photos of Intel offices around the world:
Intel to cut 12,000 jobs, 11 percent of workforce
UNITED STATES - JULY 13: The Intel Corp. logo is seen outside of the Intel Corp. headquarters in Santa Clara, California, Thursday, July 13, 2006. Intel Corp. Chief Executive Officer Paul Otellini will fire 1,000 managers worldwide, the biggest cuts in four years, in an effort to slash $1 billion in costs and restore profit growth at the world's largest semiconductor maker. (Photo by Kimberly White/Bloomberg via Getty Images)
SANTA CLARA, CA - JULY 17: A view of the Intel Corporation headquarters is seen July 17, 2002 in Santa Clara, California. Intel, world's largest chipmaker, announced July 16, 2002 that it will layoff 4000 workers. (Justin Sullivan/Getty Images)
SANTA CLARA, CA - AUGUST 19: People take photographs in front of the Intel logo outside of an Intel office August 19, 2010 in Santa Clara, California. Intel announed today that it plans to buy security software maker McAfee for a reported $7.68 billion. (Photo by Justin Sullivan/Getty Images)
SANTA CLARA, CA - JULY 20: A sign is posted at the Intel company headquarters on July 20, 2011 in Santa Clara, California. Intel will report their quarterly earnings today after the market closes. (Photo by Justin Sullivan/Getty Images)
School children visit the Intel Museum in Santa Clara, California March 20, 2007 at the company's corporate headquarters south of San Francisco. The museum is one of just a few in the region focused on the technological developments coming from Silicon Valley in recent years. Picture taken March 20, 2007. REUTERS/Adam Tanner (UNITED STATES)
SANTA CLARA, CA - JULY 20: A tourist poses for a photograph in front of a sign at the Intel company headquarters on July 20, 2011 in Santa Clara, California. Intel will report their quarterly earnings today after the market closes. (Photo by Justin Sullivan/Getty Images)
Intel Chief Operating Officer Brian Krzanich speaks during an interview with Reuters at Intel headquarters in Santa Clara, California March 13, 2012. Intel's manufacturing whiz and new COO Krzanich says he has fine-tuned his supply chain to meet expected demand for chips for smartphones and tablets. To match Interview INTEL/KRZANICH REUTERS/Robert Galbraith (UNITED STATES - Tags: BUSINESS SCIENCE TECHNOLOGY)
An Intel logo is seen at the company's offices in Petah Tikva, near Tel Aviv October 24, 2011. REUTERS/Nir Elias (ISRAEL - Tags: BUSINESS SCIENCE TECHNOLOGY LOGO)
A staff looks at computers at the Intel booth during the 2015 Computex exhibition at the TWTC Nangang exhibition hall in Taipei, Taiwan, June 2, 2015. Computex, the world's second largest computer show, runs from June 2 to 6. REUTERS/Pichi Chuang
Intel Corporation headquarters in Santa Clara, California, is being investigated by the Federal Trade Commission for possible monopolistic practices in its' microprocessor business, September 25. Intel's microprocessors are the brains behind almost eighty-five percent of the world's personal computers.
Craig Barrett, president and chief executive officer of computer chip maker Intel Corporation, addresses a news conference in New Delhi May 25. Barrett said he expects a short supply in the industry for another 12 months as components run short.
Intel Corp. signage stands outside the company's office in Santa Clara, California, U.S., on Tuesday, May 15, 2012. Intel Corp. Chief Executive Officer Paul Otellini said Chief Operating Officer Brian Krzanich is one of âa stable of strong candidatesâ to eventually replace him. Photographer: Noah Berger/Bloomberg via Getty Images
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On a per share basis, the company earned 42 cents per share, in the first quarter, up from 41 cents a year earlier.
Net revenue rose to $13.70 billion from $12.78 billion.
(Reporting by Narottam Medhora in Bengaluru; Editing by Sriraj Kalluvila)