'




Intel's Wearables Division to face Mass Layoffs - Alldamoney

[Latest News][6]

Newsticker

translate

grid http://i64.tinypic.com/25jch3a.jpg

Intel's Wearables Division to face Mass Layoffs


Poor performance in Intel’s nascent wearables business has triggered its third round of layoffs since the past 18 months.Back in the days when Intel bought Basis back in 2014, there were hopes the acquisition would push the wearables market to the next level. However, things didn't go as expected, the first Intel-backed product had a tendency to catch fire and was subsequently pulled from the market earlier this year.

Layoffs are expected as Intel’s wearable business tumbles 


Report from TechCrunch states that negative outcome in business will definitely affect employees in its wearables group, especially the part that develops smartwatches, earbuds and electronics embedded in clothings.
After assuming his role in 2013,Intel’s CEO, Brian Krzanich, made his commitment to the wearables market very clear.“He reaffirmed that commitment in his keynote speech at the Consumer Electronics Show this January,” Eisenhardt said. “Brian and his team, including New Technology Group head Josh Walden, share our vision for the potential of smart eyewear in the consumer and enterprise markets, and this deal reflects that shared vision.”

Back then, as Intel looks to grow its business past the fading PC market, the organization had touted wearables as the next big thing. But that vision started to blur lately, when Intel was forced to recall the Basis Peak smartwatch, because of overheating concerns. Instead of replacing the units, the company instead chose to stop production altogether, even though the overheating had affected only 0.2 percent of users. Later that year, Peak’s software support and cloud storage was also shut down.
While the wearable business is generally small, the pending cutbacks wouldn't be so substantial. But just last April, the company eliminated 12,000 jobs across the company while it shed more than 1,100 employees last year citing poor sales. Still, setbacks in any of Intel's new technology groups illustrate the difficulties of a mature tech company trying to find its way in a rapidly changing industry.

For example, the company introduced a "smart bracelet" in 2014 and acquired mobile fitness tracking company Basis.however,the previous summer Intel reviewed the Basis Peak line of smartwatches, cautioning some of them could overheat to the point where they could harm individuals.
The smart bracelet never took off and just last summer Intel recalled the Basis Peak line of smartwatches, reason that some of them could overheat to the extent of injuring people leading to Intel stopping sales on both devices.
More recently, in an event held last week on artificial intelligence Intel advertised drone technology, virtual reality and autonomous driving as more promising business segments in a move to diversify its business.

While the future seems grim for Intel's NDG, to conclude it will close down soon would be untimely. Firings are regular however, a shutdown is more improbable than a total shakeup for Intel’s wearable business.

Unnamed sources disclosed to TechCrunch that layoffs are expected and some employees have already been noted about it with the majority of layoffs expected to be completed by the end of 2016.

Alldamoney '

features the latest political, financial,business and sports news to entertain and inspire ideas for business and lifestyle.

Start typing and press Enter to search

Business Finance Politics LifeStyle Sports