The steady decline in demand for personal computers has affected Intel, the world's largest manufacturer of semiconductor, Intel. The chipmaker recently announced that it is laying off 12,000 employees. The figure represents about 11 percent of the company's total work force.

Intel chief executive officer Brian Krzanich announced the news on Tuesday, saying that the decision is part of the company's larger corporate restructuring plans. Intel also reported that the company failed to achieve its first quarter earning prediction which in turn forced the company to lower its projected revenue for the year.

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In a statement acquired by The New York Times, Krzanich said, "Intel has been known as the PC company. It's time to make this transition and push the company all the way over."

Speculations claim that due to the ongoing decline of the PC market, Intel might shift its focus on smartphones, sensors and cloud computing. Intel's restructuring plan is a monumental evidence of how a tech company should navigate its resources in order to become more flexible.

Intel shares dropped by about one percent to $31.60 at the close of New York trading. The company was able to gain 2.4 percent in extended trading following a halt for the layoff and earnings announcement.

Aside from Intel, several tech companies have also reported significant drops in their revenue. IBM reported a decline in its profit and revenue which include a drop of 22 percent in sales of computing hardware.

Microsoft is expected to report its financial results before the end of the week. The Redmond-based tech company had changed its strategy for several years and now counts software, servers, and giant cloud servers as some of its major business.

As for the global PC market, it had dropped 9.6 percent during the first three months of the year, according to Bloomberg. This is the sixth consecutive quarterly decline for the market which saw its sales figure dwindle over the years.

TagsIntel, Intel job cut, PC, PC market, Intel news, Intel jobs, PC news, PC platform