Feedback
Business

Intel Cutting 12,000 Jobs, 11 Percent of Workforce

Shares of Intel fell nearly 3 percent after the bell Tuesday as it announced it would cut 12,000 jobs, or 11 percent of its workforce, by 2017 due to restructuring.

The technology company also said the chief financial officer Stacy Smith would leave that role to lead sales.

The technology company posted first-quarter earnings per share of 54 cents per share.

Read More from CNBC: We Expect 2016 to Look Like a Copy of 2015, Intel CEO Says

Analysts had expected Intel to report earnings of about 48 cents a share on $13.83 billion in revenue, according to a consensus estimate from Thomson Reuters.

Tuesday's earnings mark Intel's first under a new financial reporting structure that plays up new revenue streams after client computing, the company's largest business, suffered declines last year.

In 2015, sales from client computing dropped 8 percent to $32.2 billion. The new segment structure keeps client computing but also breaks out results for Intel's "Internet of Things" group, the "new technology" group which includes drones and wearables, as well as Intel's security group.

Read More from CNBC: 'Ransomware' Attackers Setting Sights on Bigger Targets, Intel Says

The change comes as Intel customers are looking beyond PCs for the "next big experience," from cloud computing to personal assistant robots, CEO Brian Krzanich told CNBC at January's Consumer Electronics Show in Las Vegas. The data center and chip-maker announced collaborations with ESPN, New Balance and Oakley at the event.

Intel shares are down 2.9 percent over the past year.