Unfortunately, many employees that this company needs very much will probably be cut. My opinion is that this short-term cost cutting will be at the expense of long-term growth. On the other hand, I wonder if the leadership is even thinking about long term growth anymore or is it just managing the decline?
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Long term growth? Intel is dying. Covid/chips shortage days are gone. Macro situation is affecting all companies and people. Now Intel has to deal with all the extra people hired during chips shortage. Failed products and sub par fab technology. First, if the dividend and gross margin drops the stock will be in a death spiral and vulture capitalists will come. The cuts have to be deep to prevent the death spiral. Second, shareholders will demand to spin off IFS. What ever is left will be gobbled up like the modem group or spun off for IPO like mobile eye.
As the saying goes when you become an elephant there will be elephant hunters.
OP -- Do you plan on long voyage when ship is sinking? First you need to save ship from sinking. Since 2000 intel ship is slowing sinking without visionary CEO. Intel ship always has lot more passengers than it can hold. 40% overstaffed compared to competitors. Under Pat it is most bloated.
OP -- Do you plan on long voyage when ship is sinking? First you need to save ship from sinking. Since 2000 intel ship is slowing sinking without visionary CEO. Intel ship always has lot more passengers than it can hold. 40% overstaffed compared to competitors. Under Pat it is most bloated.
Re: list of major blunders:
- Itanium
- OmniPath (aka Intel's Infiniband)
Intel leadership has been dropping the ball for at least the last 20-years which has allowed the competition to not only catch up, but take the lead in several markets.
For example:
- AMD was first to market with a 64-bit desktop CPU in 2003 with the Athlon 64. At the time, Intel believed that users didn’t need 64-bit capabilities.
- Around 2005 when Apple started designing the first iPhone they approached Intel to design a mobile processor for it. Intel declined because they believed that nobody would be interested in smartphones, so Apple went to ARM which enabled ARM to grow the mobile processor and IOT market and eventually move into the server space.
- TSMC has completely surpassed Intel in fab/process technology. So much so that Intel had to outsource some of it’s chip production to TSMC to remain competitive.
- McAfee…enough said.
- Tablets and phones. Intel tried and utterly failed in this space, millions of dollars wasted.
- AMD was first to market with PCIe GEN 4 products years ahead of Intel.
- Mellanox already has 100Gb Ethernet switches and adapters on the market years ahead of Intel, and were working on 200Gb before Intel even had a 100Gb product release.
- Minnowboard and Edison, Paul Otellini’s attempt to get x86 into the maker space to compete against Arduino and Raspberry Pi was an utter failure mainly due to poor execution. As a maker who has worked with all of the above devices, I absolutely detested Minnowboard and Edison.
This is just a short list of major blunders over the years by Intel leadership that has and continues to cost hard working employees their jobs. Long-term growth just doesn’t seem to be in the cards. The days of charging a premium price are over for Intel because the competition is doing it just as well cheaper, or cheaper and better.
Intel does need a major reduction in headcount. The company is many times larger than AMD or NVIDIA with a significantly smaller market cap. The bureaucracy actively slows down product development. That’s no way to compete.
The problem is that Intel has never been able to dissolve the worthless orgs, trim the layers of management, and lay off the worst people. It’s always a shotg-n blast to each org, taking out anyone who costs too much or hasn’t made playing political games a giant part of their career plan. No reason to expect it to go differently this time around, since today’s decision makers are the survivors of the last round of hunger games
Repeat after me.
PCs are NOT a growth market.
Ok, so what’s this “growth” everyone yammering about?
It’s not happening.
That's funny, long-term growth. They only care about the short-term and manage the decline.