Stocks will go up by another 20 percent EOY
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That's 24$
@hr+1jpkvhxd9 The number I saw for the latest CPM Hunger Games was under a billion.
I don't think you will ever see that kind of exit package again, and that the exit package cost does not figure into the size of the action, especially this time around.
But I agree that it is hard to get another 15k without stopping some sizable projects and teams.
I think something much bigger than simple headcount reductions is what is coming.
More than headcount, the CEO must describe what the company is going to stop doing, and lay out a roadmap for that change.
It is way past time for the company to shut down or sell all non-core business groups.
Move on Altera, move on Real Sense, move on Intel Capital, and find more actions to take, then move on those.
If they just slice off another 10% they risk losing at least that much by attrition, because the workload is already ridiculous and the compensation is not competitive. The company has ridden that cost-savings horse into the ditch.
Intel has no money to give layoff packages so don't worry about further headcount reduction. Pat already wasted $3B in last round and after that > 2k employees hired again.
@d1+1 Expectations may be running well ahead of what can be logistically done in over the next Qtr.
As an immediate action, with 11k managers there is probably only a few thousand that can be let go.
Likewise with line employees, having two CPM actions over the past few years has left many groups well understaffed for the work they are still trying to do.
To get more than 10k headcount reduction in 2025 I think there has to be the shutdown or sale of projects and product groups.
Even in the fabs, a restructuring would have to happen, to convert existing fab techs to contract laborers and move a lot of the indirect labor to some form of joint fab operation centers, as others have described. These changes would transform IFS to be more like other foundries, and would result in billions of cost savings. It would also increase velocity, since the individual fabs would have far fewer direct staff and so be much smaller organizations.
But these kind of structural changes will take at least a year. Any attempt to simply slash the headcount would risk having the company breaking down.
No doubt Lip-Bu understands what can be time in the short term, and the changes which would need much more time, but the nonsensical comments on this site don't reflect that and neither do the headlines.
I like the stock but if the reduction is less than 10% of the existing workforce and there is no guidance on how the portfolio will be streamlined then the market will tank the stock. I think Lip-Bu also understands what the market expects to be delivered and will do what he can to meet that expectation.
If he underdelivers then he will feel the wrath.
The fact is. Even after cuts - people covering for 2-3 people let go…. It can never return to normal or productive and positive. They need our right cut projects and products too. And they won’t. Intel can not and will not return to positive black with current strategies in place and coming. It’s more of the same
@c3+1j As has been previously mentioned, HR monitors this and similar websites, using IT automation to detect key words. This is both to detect when company secrets are being exposed but also to monitor employee productivity.
They can in most cases link a comment with a WWID, so see if the big flush that is coming includes some of those slackers as well.
Initial layoffs will be based on role and focused on middle managers.
They may not have time in the first round to include the Bottom 5% or 10%, although that is in the system and so is a known thing.
By all accounts Pat was soft on the last round of layoffs, so there are plenty of sheeple who met the criteria but were not chosen because the quota was met.
Expect an effort to front load the layoffs, to get the bulk of it done as soon as possible, with a very limited passdown period. So also expect massive disruption in communications across the company, because that is most of what middle managers do.
After that initial wave, expect a return to meritocracy in the form of cloud ranking, and periodic termination of low performers. That is what all the other tech companies have started doing and it is a great way to motivate the rank and file workers.
You won't like it, but it will work wonders.
I got exited and was one of the few people in my part of the world that actually worked , contributed , had some vision and loved the company. Good riddance , happy to watch it burn tbh. Thank god the founding team aren’t around to see this sh-t show.
Bitter .: yes a bit :)
I would like to see how many middle managers get laid off in the next one.
30k is too much in my opinion …. Definitely another 10k on the list.
More likely to remove bottom 10%. Save some payouts.
30K layoff get only 20% stock go up EOY?
Hardly unimaginable OP. There are too many people who are worth nothing and they know they survived this long. Some good people will get affected no doubt because of favoritism and nepotism we know
Which divisions are getting cut?
I agree with the layoffs prediction, but expect TSLA to maintain its current trajectory into the abyss.