Thread regarding Intel Corp. layoffs

Bob Swan used to get yelled at by customers because of quality issues.
And I can tell you a part of the reason this is happening. It’s because the “done beats perfect” mentality is sold like a song of champions within because it’s a great way for middle management to show that work is getting done. But that mentality is so dangerous because it’s not asking if the right work is being done right.

For the past few quarters, great talents are leaving in droves. Some for better offer, some because of unending frustrations. Management spent 0 effort retaining talent until its too late and spent the last focal bribing the remaining talents to not leave while offering ludicrous money backfilling. Poor execution is hardly surprising since the company now runs by fat check talkers, expensive new hires and remaining talents who are still poorly paid compared to the former 2, who are trying to get out of the company.

Just rollback the favors to all the “friends” management gave promos to, or gave technical titles to in order to increase pay bands and rsu payouts. You have technical assistants making 250k per year to make PowerPoints and take meeting minutes.

So many jokes of positions being created, not adding any value. Just increasing the fluff and decreasing accountability.

Years of promos for DEI and favor based promos has led to a bleed of real good talent. What’s left? Overpaid G9 and above ICs? New employees that don’t know their head from their ar-e…. That are coming in higher paid than their peers?

Sure their are some good people left, but leave it to this company to layoff the wrong ones again. Will layoffs be fair or will they take DEI and age into account?

Get rid of BPs and Directors. Most are pretty worthless. Pat, pay attention. Keep the people who do the work. At least cut pay in the upper echelons. Don’t just reward good performance. Axe the bo--s, there are many.

A flat org performs. Make the tens and above (or even the nines) work for their pay. Managers should have ten or more direct reports.

Before leaving in 2016 on the ERP, I spent some time looking at the bins placed in hallways for exiting employees to throw away their stuff. I remember seeing four or five technology patents under one person’s name thrown away in one of the bins. Clearly Intel canned a capable technologist, and there was probably a BS-er somewhere that was saved instead. Intel does a horrible job of determining who should be promoted vs kept as-is vs fired. One only has to look at some of IT’s PEs and upper management to see that.

When the talent quality drops, so do the results.

I know a friend who works for Intel (Folsom). She spends about 10-12 weeks a year working from India. And even when she is in Folsom, she is mostly engaged in non-work social activities. I always wondered how Intel permits this kind of incompetence. Now I understand, it looks this culture is quite prevalent at Intel.

"Death Nail" is correct. i.e. The final nail in the coffin. The alarm bells (Death Knell) of Intel's demise have been sounding for more than 10 years. Why do you think GOOG, APPL, MSFT and others all started making their own chips...

And the free government money will indeed ki-l Intel. PG will never be allowed to cut the headcount necessary while receiving huge govt, cash. Why do you think there are no layoffs or senior executives being fired? It because of the political optics. Once Intel takes the funds, Intel is locked into a strategy to try to beat TSMC.... That's no going to happen and everyone knows it. GLTA.

How did Intel not issue an earnings warning prior to this report?
The miss is so bad that it boggles the mind.
Incompetent management.

It's time to whack a 1,000 managers, again. But this time, the employees from each org should decide. It's the only way to get rid of the worst managers.

Intel is basically an India company. What do you expect?

But, But... we are number 1 in hiring URM's and diversity and inclusion! Surely that will help us outperform our competitors......

Agree that Intel needs to clean out middle management who have spent years hiring their family and friends. They are living large off Intel while producing no tangible results.

Death knell. Study your English.

The good news is that we've finally reached THE rock bottom. All the way up from here!! You only need to keep faith, remain passionate, and remember eating your free fruit everyday.

Hard to believe nobody at director level and above is shown the door after these results. Who is going to hit the road?

The cancer that’s the Intel middle management finally metastasized. The incompetent management has got to go, starting with the id--ts running the graphics team, especially the Windows graphics driver, a toxic cesspool of cronyism, run by a-holes, polishing a t-rd of a product.

Amazon Web Services grew 33%;

Azure grew 40%

GOOG cloud up 36%

Intel Data Center down 16%

Intel Revenue down ~ 22%

If the CEO is not immediately replacing at least 100 directors, managers and VPs, then he is not doing his job. None of the past CEOs would ever allow this terrible performance. I hate to say it but Pat is not going to save Intel... Intel is in big trouble.

This is the kind of quarter that gets people fired.

Layoffs and restructuring aren’t fun, but at this point I would be more alarmed about the future if Intel didn’t go down that path. These results indicate that major changes are called for. If Pat tries to muddle through this without upsetting any apple carts internally, expect more of the same in future quarters. And investors won’t stand for it. They need to see a viable way forward, or they will bail.

Intel would love to blame Putin and market conditions but can't because the competition is doing very well on the same playing field. Pat can try to blame the sagging computer market but somehow Apple had no issues with this. Despite all the emphasis on discrete GPU look at the disgraceful debacle that Intel just launched. The uncomfortable truth is that Intel alone is to blame for its own misery. This is something the entire world has known for many years despite all the feeble excuses offered by the company. Next step from here is restructuring, cost cutting, and possibly layoffs. When you can't boost the top line you can only optimize the bottom line.

CCG notebook sales down 30%
Looks like Apple and AMD are eating Intel’s lunch here.

DCAI operating income down 90%!
AMD in full effect there.

Once again TSMC is ki----g Intel.

What a disaster quarter …

Intel's revenue declined some 22% year over year in the quarter that ended July 2, according to a statement. Revenue missed consensus by 14%, the company's largest top-line disappointment since 1999, according to Refinitiv data. It ended the quarter with a $454 million net loss, compared with net income of $5 billion in the year-ago quarter. Gross margin narrowed to 36.5% from 50.4% in the previous quarter.

At least they are now admitting that it isn’t just market conditions. That official narrative, which no one outside of extreme Intel fanboys actually believed, can be retired now. Reminds me of the Fed admitting that inflation wasn’t transitory after all, months after it was obvious to everyone.

Intel simply does not have the staff to pull off any sort of comeback. Most of the super star talent left a long time ago and they can’t attract new super stars.

It’s a mediocre place on par with IBM.
Still around, but nobody wants to work there.

Expect more years of no growth and a stagnant stock, while the competitors grow.

What happened to the “Grovian execution” Pat has been talking about for the last year-plus? I wasn’t around for Andy Grove; was he badly missing earnings on terrible execution? Or is Pat a liar?

Amazon jumps on revenue beat and rosy guidance for third quarter

July 28th 2022:

Apple reports record revenue of $83B amid high inflation...
Qualcomm (QCOM) Beats Q3 Earnings Estimates on Solid Demand
Texas Instruments board declares third quarter 2022 quarterly dividend
Micron Ships World’s First 232-Layer NAND, Extends Technology Leadership

Hmmm, I wonder how other tech companies are doing so well and Intel seems to be in-trouble.