Intel is the world's largest chip maker, BUT its chipmaking revenue has relied on a steady increase in demand for chips in the PC market. That market, however, is quickly being overtaken and replaced by the smartphone. A similar phenomena hit the compact camera and video with the advent of the smartphones as well. 

Overall the cut represents about a 10% reduction in its global workforce. Intel is looking to other business ventures to replace some of the revenue. being lost in its chipmaking


http://money.cnn.com/2016/04/19/technology/intel-layoffs/index.html