Thread regarding Intel Corp. layoffs

@OP So You're Telling Me There Might Be a Chance?

Yeeaaahhhh!

As pointed out below, there are other ways to get rid of people besides layoffs.

@e8 If they are able to find a buyer for some of the fab sites, that would be shocking to many and to the stock.

The basic issue is that the company kept building excess capacity in both products and manufacturing, and failed to stop doing that when the rate of growth peaked and started declining.

Add in the many demand shocks of the past 5 years and it took the company a while to realize they needed to make a correction. LBT got it but others did not.

That's why he was brought back as CEO, because he was willing to say the quiet part out loud at a time when everyone else thought customers were just around the next corner, itching to buy product and wafers.

Like a lot of other rumors over the past year, the one about the ex-ceo of GF coming to Intel I think speaks to what may be coming. That is, a major sale or JV with GF to offload all the non-EUV fabs.

That would be epic.

@e8 Breaking out Floundry as part of IDM 2.0 was to enable it to eventually be spun off if needed.

I agree that before the company takes that step, they will try to right-size mfg to better fit internal demand.

Reality is that Intel is now a $40B to $50B revenue company, and that is not going to change for the better unless some miracle product somehow emerges.

So that is all the fab capacity they need, and means that many fabs and entire sites need to be sold, just to fit the business.

This is a real shift from the persistent excess capacity the company always maintained, but that was when the company dominated their markets.

This is the new reality and the company is now doing what is needed to be sustainable.

Fab workers are in for a series of shocks, and about to find out what it means to work a shift.

Hint: it does not involve idling in the cafe.

It is time for anyone in the fabs to see what is coming.

At the least, IFS will be broken up, with the older, non-EUV, fabs sold.

It is possible that the company would even include newer fabs if that was what was needed to sell an entire site.

If external customers continue to stay away, then the strategy will shift to lagging nodes or to sell or spin off the rest of IFS.

In the meantime, TD gets cut down to size, which might even improve their performance. The fabs see wave after wave of outsourcing till IFS is profitable.

The company is clearly done building anything based on hopium forecasts, and is now moving strongly towards consolidation.

I'd expect IS and NM sites to be sold, if there is a buyer out there, and the potential of one of the AZ campuses being sold as well.

The only safe spaces seem to be in OR and IR.

This is coming on fast. Get ready for Shock and Awe.

DZ previously stated that no further company wide action was expected through 2026, but that does leave room for things like shutting down CR and consolidating ATM.

Expect an ongoing series of such announcements, as the company is clearly reviewing then taking actions on how to best downsize to meet the expected demand.

x86 is starting to get competition in various form factors, and AMD is taking datacenter market share, but sanctions, the hangover from the pandemic bo-m, and AI crowding out datacenter CPU upgrades are all working to suppress sales.

The CPU upgrade cycle will resume and Intel will have a chance to be more competitive with AMD in the meantime, but it would be reasonable to expect more of the same for many quarters to come.

Hey, it's not like there is a Troll School.

If there were, there would be no grading of their work.

@a5 Trust the Trolls?

Really?

You don't have to look back far, like just a few posts further down on this page, to see all manner of wildly incorrect predictions from trolls.

They have been wrong about every single aspect of this layoff.

Middle Managers? Nope.
H1B? Nope.
20%? Nope.
20,000? Nope.
EVP? Nope.
Additional 10%, 20%, 30%? Nope.

Fact is the trolls either don't work for Intel or are 20-something fab techs idling in the cafe.

Guess what, that is who actually got laid off.

@av Attrition after most layoffs increases a bit but is normally in the low single digits.

You might see or hear of some individual group where a bunch of people got poached or something but the usual amount is fairly steady over time.

Doesn't look like any additional layoffs are needed to get to 75,000, which I assume does not include the headcount of various businesses that Intel owns.

Not sure if NEX, Automotive or Marketing are totally accounted for in the WARN data, or anyone else they gave 60 days notice to. WARN is usually not the real total.

Attrition will definitely continue to be higher than normal. Still seeing a lot of people leaving on their own.

@ar Sorry, meant to type 75k, or 15%

Because this is the first time the company has stated the target, the press/AI is writing it as something which is going to happen but in fact it has already mostly happened.

Super Dave might clarify this a bit on the call or in subsequent internal meetings.

But as others have stated, there is a lot of outsourcing and other changes coming. This will go on for several years by all appearances.

@a2 shut the fu-k up man

The new headcount target is 74,000, expected by the end of the year.

Still unclear how much the recent notifications amount to.

Also consider that the shutdown of several lines of business is ongoing and those are not included in the numbers so far.

It may be that the effort to reduce headcount will see some additional action, as various groups get revised targets.

It is simply not clear at this point, and any additional reduction could well be very BU specific and not company wide.

OP, think of all of the things that management has said over the years that just wasn't true. Why are you expecting this one to be true?

@am Uh..there is no clip of this. It was something they stated.

Besides, this site does not have the ability to attach clips.

Yeah, and Intel's leadership is always SO up front & honest with employees. /s

@ag could you give us the clip of this “announcement” of no more company wide layoffs? I asked around my team and no one has heard or seen this.
new targets to each group and then it is no longer company wide and each group do it at their pace.
LBT company down to 50K. Even badge flipping half the people will be cut initially or several months later by new contracting company

@a6 They announced it while discussing an upcoming conference.

OP stated to stop expecting another company wide event, not that there wouldn't be massive badge flipping and maybe another few tens of thousands leave as part of assets being sold.

OP please show the exact text from the email or circuit article that says "No Company wide action through 2026". You can't because you made it up.

even IF there is no company wide action, there will be per division actions which amounts to the same thing! Haha!

The company has a bad track record on no layoff promises. IFS wide is not company wide. 2026 is only about five months in the future, perfect time to gather more information on who to axe next.

Trust the trolls

I don't believe OP is ready to be sold, outsourced, replaced by AI then trolled by a humanoid robot.

You can't stop the Troll