Intel (NASDAQ: INTC) reported Q1 EPS of $0.54, $0.07 better than the analyst estimate of $0.47. Revenue for the quarter came in at $13.8 billion versus the consensus estimate of $13.83 billion.

Intel announced a restructuring initiative to accelerate its evolution from a PC company to one that powers the cloud and billions of smart, connected computing devices. Intel will intensify its focus in high-growth areas where it is positioned for long-term leadership, customer value and growth, while making the company more efficient and profitable.

The data center and Internet of Things (IoT) businesses are Intel’s primary growth engines, with memory and field programmable gate arrays (FPGAs) accelerating these opportunities - fueling a virtuous cycle of growth for the company. These growth businesses delivered $2.2 billion in revenue growth last year, and made up 40 percent of revenue and the majority of operating profit, which largely offset the decline in the PC market segment.

The restructuring initiative was outlined in an e-mail from Intel CEO Brian Krzanich to Intel employees. “Our results over the last year demonstrate a strategy that is working and a solid foundation for growth,” said Krzanich. “The opportunity now is to accelerate this momentum and build on our strengths.

“These actions drive long-term change to further establish Intel as the leader for the smart, connected world,” he added. “I am confident that we’ll emerge as a more productive company with broader reach and sharper execution.”

While making the company more efficient, Intel plans to increase investments in the products and technologies that that will fuel revenue growth, and drive more profitable mobile and PC businesses.

Through this comprehensive initiative, the company plans to increase investments in its data center, IoT, memory and connectivity businesses, as well as growing client segments such as 2-in-1s, gaming and home gateways.

These changes will result in the reduction of up to 12,000 positions globally -- approximately 11 percent of employees -- by mid-2017 through site consolidations worldwide, a combination of voluntary and involuntary departures, and a re-evaluation of programs. The majority of these actions will be communicated to affected employees over the next 60 days with some actions spanning in to 2017.

Intel expects the program to deliver $750 million in savings this year and annual run rate savings of $1.4 billion by mid-2017. The company will record a one-time charge of approximately $1.2 billion in the second quarter.

Intel also today announced a CFO succession plan. The current CFO, Smith, will transition to a new role at the company, leading sales, manufacturing and operations once his successor is in place. The company is beginning a formal search process for a new CFO that will assess both internal and external candidates. Smith will remain firmly focused on his CFO role and duties throughout the search and transition process.

Q2 2016 Outlook (GAAP, unless otherwise noted):

• Revenue: $13.5 billion, plus or minus $500 million, returning to a typical 13-week quarter.
• Non-GAAP gross margin percentage: 61 percent, plus or minus a couple percentage points.
• R&D plus MG&A spending: approximately $5.1 billion.
• Restructuring charges: approximately $1.2 billion. Non-GAAP restructuring charges: zero.
• Impact of equity investments and interest and other: approximately $150 million net gain.
• Depreciation: approximately $1.5 billion

Full-Year Outlook (GAAP, unless otherwise noted):

• Revenue: up mid-single digits, down from prior outlook of mid- to high-single digits.
• Non-GAAP gross margin: 62 percent, plus or minus a couple percentage points, down from prior outlook of 63 percent, plus or minus a couple percentage points.
• Non-GAAP R&D plus MG&A spending: approximately $20.6 billion, plus or minus $400 million, down from prior outlook of $21.3 billion.
• Restructuring charges: approximately $1.2 billion. Non-GAAP restructuring charges: zero.
• Depreciation: approximately $6.3 billion, plus or minus $200 million, down from prior outlook of $6.5 billion, plus or minus $200 million.
• Tax rate: approximately 22 percent, for each of the remaining quarters of the year, down from prior outlook of approximately 25 percent.
• Full-year capital spending: $9.5 billion, plus or minus $500 million, is unchanged from prior outlook.

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