This year only 3k headcount reduction planned. Next year 5k. LBT is slow in cutting heads.
Is this correct?
19 replies (most recent on top)
NO, wait for it... big numbers coming.
@OP Probably more than 3k but hard to see 20k as part of the current thing.
Maybe later this year they will start doing the large reductions due to outsourcing, and/or sell some old fabs or product groups.
Then this will get real.
I think rather than think of this as a mass layoff, better to consider it as a phased restructuring which is going to create waves of CPM.
Some will be gone and some of those will be in groups sold to other companies, some will be flipped to some contract employer.
This is not the easy layoffs as seen since the days of BK. This is the real work of structurally changing how the company operates, for the first time since..ever.
@ea Super Dave denied the 20% number and by the look of it this promotion-to-customer-event is just a few thousand people.
The fabs are experiencing more reality check because they were mostly unaffected by the past 2 layoffs.
So to them this is apocalyptical, but to the rest of the company it is like a typical Thursday or something.
This is a basic summary of what they emailed in June. "We’re planning to cut about 15–20% globally, mostly telling people by July, but we reserve the right to change the scope, timing, and even the final percentage."
The honest answer is None of us knkw how many or how many rounds. I dont knkw if you all figured this out yet but Intel does what they want regardless of how the employees feel about it.
"LBT denied the rumor of 20% for Intel as a whole"
He never denied it. He just brushed it off because he doesn't care.
@av Check that number again.
The company doesn't break out IFS but has stated that all of production is about half of the total HC.
IFS was not hit hard in the past few rounds of woodchipping, because of the push to 18A and the delusion that customers would be lining up, real soon.
Now that 18A is some sort of thing, and the reality of how hard it is to ramp a new foundry (e.g. very hard), IFS and TS in particular needed to slim down and stop causing such deep losses for the company.
The real, serious headcount reductions will take the form of outsourcing and the selling of the older fabs. My guess is LBT is busy trying to sell those fabs right now, and that it is a high priority for the company.
@av it's probably going to be 20k+ in foundry alone.
Foundry is ~75k. Naga said 15-20%. Even that lower bound is still 7500 people.
LBT denied the rumor of 20% for Intel as a whole, but Naga confirmed 15-20% for Foundry. Based on how this is rolling out right now most of that will have concluded by the end of this month.
We will have a fuller picture when Intel releases the next couple of quarterly earning results and we see what happens with HC.
Lip Bu promised the Street 500 million in reductions this year, 1 billion next year. So yeah. Far from over.
Reality is that this is the end of the beginning, not the end of anything else.
@aa has it about right. Low performers are terminated, offset by hiring to try to improve worker quality.
Some stuff gets sold, and many, many workers then work for some other company.
Outsourcing like you can probably not believe at the moment, and many workers end up there either by direct transfer or by applying for their old job.
And if x86 is really in a secular decline, lost out to GPU in the datacenter and ARM in PC, then everything just keeps getting gradually smaller, with a slice off of HC every year or two.
The current effort has a bit of all those things.
3k minimum just at Ronler Acres this month. They are postponing the final numbers until after the quarterly earnings call on July 24th to make the investor question and answer period look better.
@a1 Show me who and when that number was articulated.
at least 20K workers HC axed. dreaming at 3k only. Most CVP/VP will be saved. This is the way. This is the Intel way.
The company not only never said 20k or 20%, they denied that rumor.
By all appearances, this was just a few thousand people, and condolences to them.
Get used to it, because this is going to be repeated over the next several years.
There will be low performers cut after at least an annual review cycle if not quarterly. Call that 5% of total HC per year, with hiring likely to backfill.
There will be entire job roles outsourced, and that will take some time. Call that 20% to 30% of total HC.
Some products and maybe some fabs will be sold, so those people will get a different paycheck. That could be as much as 50% of the current total HC, so is the real change.
If revenues decline then there will be more broad based ISP, where each group gets a lower target and loses some people, much like this round has been.
Slow head. Count reductions.
No it's not. There will be a reduction of at least 20k between now and next summer.