What happened? Just because of the layoffs?
34 replies (most recent on top)
Those RISE goals sure turned out to be brilliant idea 😂
I'd say that if someone is still working in IFS, they should try to be somewhere else if at all possible.
Many are in such job-specific roles and have reasons not to leave, so will ride this out, but others can at least move to the other parts of Intel.
At this point anything outside of IFS has been largely cut down to size, so the job security issues are likely better anywhere but in IFS than in IFS itself.
Fab workers always thought they had some kind of job security, the way a public servant might think. But what they really had was a corporate strategy to run the fabs at overcapacity, all the time.
Merely paring down to even the forecasted demand will result in mass job loss and some fab sales as well. That is exactly what Caufield did at GF and will bring to IFS, but it will happen regardless of the CEO.
I'd say possibly all fabs in Israel are gone, NM, part of AZ and part of IR as well.
OR is contiguous fabs, so will be kept but will see the highest percentage losses of any site, because that is where the most extreme excess capacity currently exists, in the fabs and in engineering.
There will be plenty of trolling about this once it is happening, but that doesn't make it fake either.
@je Thanks for this… and closure of the US Steel purchase should provide the insight that its deal time. This stalemate BS at Intel needs to end
Maybe the public way the Boards shenanigans have been exposed will prompt Yeary to step down. The Board is better than it was, but they need to be aligned with the CEO, or get another CEO, or get another Board.
Taking Foundry public does make sense in that it will prompt a serious overhaul of that business, while also further pressure ProdCo to perform, and Intel gets a lot smaller and so easier to manage.
But it will almost certainly take Foundry close to filing Ch11, fabs will be sold and workers will be terminated en masse.
That is why the Board was meeting with the ex-GF CEO Caufield, because that was part of the Yeary plan to take Foundry public. LBT pushed back on that, but now that the gov't has attacked the issue, it seems pretty clear it will happen.
Read and know what Caufield did as GF CEO, because it was fairly epic, and not in a good way for workers.
@e5 If it wasn;t obvious enough before it is now.
The company needs to get small enough to shed at least half of the ELT.
Go back to being a technology company instead of whatever the F it has become.
@e3 I think LBT has the same issues with the Board and ELT undermining whatever he tries to do as Pat and others have had.
Only by getting smaller will enough of them be pushed out.
If there ever were a sign that the conglomerate needed to be radically paired down, it is how out of control upper management continues to operate.
Now there is a CEO who is actively pushing out these ELT and then he gets attacked by the Board.
LBT is not a 'savior' but he is not the bad guy in all this either.
If he wants to keep the job, he is going to have to do more than make generic statements about his current investments in China.
Lots of investors piled into Chinese companies, only to find out they were partners with the many tentacles of the CCP, then they made a decision about whether they were for or against the US.
This last layoff was just the standard layoff formula. Intel is in bad shape and requires big structural changes. Pat failed to see this. Most likely only good news made it to Pat and he didn't do his job to assess the actual situation. I am not sure what LBT is up to, but back to back firings of ICs is not "fixing" Intel. The problem is in the board, ceo, and upper management.
Looks like Yeary is the one causing all the issues, but then he operates behind the curtain so LBT gets the hating.
Yeary was the one shopping an Intel breakup to various companies and is the one who wants to see foundry disassembled and spun off.
It is the CEO who wants to hold things together at least for now, getting the business in better shape prior to divestment of the fabs.
Of course, that means letting people go, but it is what is needed.
If not for what the CEO is doing, the company would be on a faster path to failure, and Ch11 wipes out a lot of current employees as well as shareholders and retirees, so I'm liking LBT a lot more than Yeary at this point.
But he will probably have to relent and go along with the foundry asset spin off. Even the potential customers want that.
@bd absolutely, I want to see Intel and the workera get fu---d
I'm tuning this freak show out.
LBT will either prove that he divested from previous investments which ended up associated with CCP, or he won't be able to prove that.
I like what he is doing to Intel, even if that is to prep it for an orderly breakup, with possibly nothing left called Intel at the end. By improving cost efficiency, he is helping the remaining workers keep their jobs, and that is the only thing I actually care about.
I agree with the other posters that if he is removed as CEO, what come next will be far less orderly and may include bankruptcy, or merely the company being sold for scrap, with a good number of employees terminated with nothing.
The Intel haters don't care about the workers. To them the workers are sheeple and something to be mocked. They just want to see Intel fail, plain and simple.
The board should have pushed Pat out! See guys?! Seems if all these conspiracy theories are true, we were better off with Pat? Considering the alternative? Damn!
@av Your idea of a leader is either a preacher or a liar and conman, like Obama. Turning around Intel needs a different kind of person. LBT is on the job for 4 months and he is doing the layoffs as it is urgently required. Employees will be amplely motivated by the classic fear and greed. The time for silver tongue is over, both for Intel and for America.
He is a terrible leader, he had to read his answers off a teleprompter and appears to be out of his league when having to think on his feet. And now it appears the BOD sc--wed up and didnt do its due diligence in checking him out. Terrible choice from the start!
Our company interviewed a lot in the recent layoffs of intel employees and they were all braindeaed middle managers that did nothing. All managing the interface of departments and products from what seems to be a completely chaotic structure.
@aj DJT just needs someone he can trust in the CEO chair which is apparently not LBT. I assure you we are not being broken up we are getting help getting the whales the 10-Q says we need and LBT is getting ousted because his bluff was called. Trump will do the right thing for Intel’s long term survival.
The board maybe incompetent, but they don't hate the company and the employees. My understanding is that by "breaking up", they will create a few publicly traded companies like HP did, and NOT selling piece by piece and bankrupt the last piece.
They work for the shareholders, not for Trump.
We were walkin' in high cotton,
Old times there are not forgotten,
Those fertile fields are never far away,
We were walkin' in high cotton,
Old time there are not forgotten,
Leavin' home was the hardest thing we ever faced.
@ah I have no beef with this or much of anything else DJT has done.
I don't care for how he communicates, but he is on the right side of almost every issue, imo.
But the setup is no coincidence. This is how people and companies get taken down by D.C. This is serious business, in a town that takes business seriously.
@ag @af you guys expect too much of our politicians. DJT expects us to keep making chips in defiance of all laws of economics. That’s the beautiful part of it. Sure sure you are correct that out choice are elegant breakup or chaotic breakup. Try explaining that to DJT!!! He’ll just think you’re using an underhanded negotiating tactic.
@ae The CEOs version of the breakup would have kept many more jobs than if the company is forced into a bankruptcy or quicksale by the administration.
There was no scenario where he was going to bring back x86 dominance, because that would be as impossible as 'bending the spoon'. There is no spoon.
Any workers who somehow thought of a turnaround or continued existence are now feeling deep, deep chagrin.
People don't like change, but can't stop it either.
@ae Cotton is clearly doing DJTs bidding. That is what he does and then the question is, what is DJT trying to force the company to do that it was not already doing?
So as the breakup artist he never was
savior in the first place.
And basically Tom Cotton learned about the breakup effort and is saying nyut nuh
@ac Assuming you know that is a rhetorical question, I'll ignore it.
The Board hired LBT to get a better breakup value than they could have gotten in a fast breakup.
They got bids from Broadcom and others which were pretty low. LBT knows how to clean up a company, as he has done with startups and Cadence. He also knows how to bring them to market. That is why he was hired.
But the gov't has become increasingly frustrated by the lack of a deal and so is playing hardball by going after LBT. This is to force his hand and get the deal done on terms which won't be as good and if it include bankruptcy then many workers will be out as well.
@ab Doesn't the board have have fiduciary duty to shareholders?
@aa I'm not conspiratorial but to have a sequence of things as has happened over the past week is not mere coincidence.
The TSMC buying into a spinoff is not a rumor, and of course Tom Cotton doing his usual easy pitch to DJT is sort of business as usual, then add in the Tariffs, which seem to be targeting specific companies due to the exemptions.
So if there is a conspiracy, it is to force the Board to do a bankruptcy, when the Board really wanted to get to a sale in a more gradual, controlled manner, or they wouldn't have hired Lip Bu Tan in the first place.
So watch what happens if the CEO is pushed out, because it will come fast, and these things usually happen over the weekend.
Friday you work for Intel, Monday you either are unemployed or work for another company.
It is not just the bankruptcy which is all prearranged. The whole sequence of events are set up in advance, then merely executed.
That kind of conspiracy is business as usual.
I think there is a cognitive disconnect between some workers and LBT, because the apparent strategy is to prep the company for a breakup and potentially dissolve it entirely, while part of the usual CEO job is to rally the workers and describe to them the plan to make the company better.
But that is not the plan.
When the Board retired PG, they appear to have decided that a breakup was the best strategy, and so met with various other companies to work out a value, then hired LBT to clean up the company for that eventual sale. There are plenty of stories out there to support this.
Add in the government pressure to tie up the fabs with TSMC, which appears to have just gotten ramped up by attacking LBT, plus the tariffs, and what appears to be happening is a bit of a conspiracy.
The conspiracy, if it exists, is to force the deal on various parties involved, and possibly through bankruptcy to sweeten the deal for the buyers. If TSMC can get all the new fabs with none of the liabilities, then yes they will do the deal.
Same is true on the product side, but the fab sites in particular have all manner of potential liabilities for ecological damage, worker injuries and deaths, contract disputes, IP disputes and the list really does just go on and on.
Wipe all that (and debts) out in bankruptcy and the fab sites look like a pretty sweet deal.
@a4 ahahahah sooooo funny you are sooooo funny
He will be a savior when he agrees to sell Intel to Apple
5CEO 4 yr policy just became 5 CEO 2 yr policy!
@OP don’t forget the RTO
I don't believe OP trusts what he reads on this site so much.
@OP Internally no one ever thought he was a 'savior'.
My man hired a bunch of his buddies to personally review every design that goes through the door customer or not and send em to Beijing. He also cancelled all the upcoming European domestic supply chain projects and threatened to cancel the US ones too. He going to Guantanamo
Just wait until his resignation comes with the announcement Apple is buying us out