Intel announced a restructuring that will cut 12,000 jobs, or 11 percent of its staff, and take a one-time restructuring charge of $1.2 billion as it tries to position itself to be competitive beyond the PC.

The move by the world’s biggest chip maker is the most drastic change to date initiated by Brian Krzanich, who was named CEO in May 2013.

Intel said in a statement it wants to evolve from a PC chip company to one that “powers the cloud and billions of smart, connected computing devices.” Intel said it 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.”

Intel also said that Stacy Smith, chief financial officer, will transition to a new role leading sales, manufacturing, and operations once his replacement is found. Intel reported earnings and revenues for its first fiscal quarter today that actually beat earnings expectations and slightly missed revenue projections.

The company reaffirmed that 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. These growth businesses delivered $2.2 billion in revenue growth last year, making up 40 percent of revenue and the majority of operating profit, which largely offset the decline in the PC market segment.

“Our results over the last year demonstrate a strategy that is working and a solid foundation for growth,” said Krzanich, in a statement. “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.”

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.

But Intel will cut the 12,000 jobs through 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 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.