Thread regarding Intel Corp. layoffs

Seems clear that any layoffs will be targeted, isolated to product decisions or foundry efficiency.

Glad to hear that they are actually switching to what is referred to as 'smart' capital, rather than spending like a drunken sailor on capacity that does not serve a customer.

If the semi tariffs are forthcoming then it they may need to ramp up the buildout but no reason to over their skiis on that. Any company who sees their costs double due to tariffs should have consequences for not moving some production to Foundry sooner. Not an Intel problem.

You can see the effect of having Stacy Smith and the current CFO as co-Ceo, in the sharp focus on cleaning up the balance sheet and income statement. That should increase the value of any divestitures and make the company more appealing in the CEO search. Longer term the company really needs a CEO with at least a product background or a technology background, but focusing on finances is the right thing in the interim.

Unless pressured by the govt to spin off Foundry, break up the company or do a takeover, I'd expect the status quo to remain until the new CEO is onboard. It would be awesome if that CEO selection resulted in some Board turnover (as a condition).

So as far as the stock, I think it remains in the recent range, at risk of being taken lower if the sector turns down in a demand recession.

Plenty of companies would crash in the event of tariffs, but not Intel. It is as much a contra asset to the sector as ever.

by
| 1651 views | | 6 replies (last February 1, 2025) | Reply
Post ID: @OP+1jjwvhr11

6 replies (most recent on top)

If the reality of tariffs causes the market or the sector to retest sharply, that could drive Intel to the low teens or maybe even the high single digits.

I think Sweater Boy (and his sidekick Shemp) would do another round of layoffs to protect the profit margin, and that as long as the stock is in the teens they will at least continue to look for headcount reductions.

Foundry losses would create pressure to potentially sell or shut down a fab, and in the meantime seek ways to lower headcount. Rumors of a 7nm fab sale to Global Foundries may prove to be more than mindless speculation.

So unfortunately the weak global economy is aligning with the lingering effects of past excess fab expansion spending to create an environment where layoffs could remain at a high pace for 2025.

Even if the semi tariffs do happen it will take a few years to bring those customers onboard. That might stop the downsizing, because what they currently lack is proven demand to justify all the added capacity.

by
| | Reply
Post ID: @ej+1jjwvhr11

The major investors just recently added Stacy so that shows what they want done with Intel. Manage it for profits and get rid of foundry and the associated technology development.

The Board is secure, because that is how the major investors want the company to be run. Just look how the Board went all in on Bob Swans financialization efforts.

Accept that the status quo is going to remain, and get even more concentrated on milking x86 cash flow as time goes on.

by
| | Reply
Post ID: @dm+1jjwvhr11

TSMC tariffs are coming in April just an fyi from government team. If tapeouts poor in we'll pump capex then

by
| | Reply
Post ID: @b2+1jjwvhr11

Oh no, less cheap Chinese garbage into the landfill!

by
| | Reply
Post ID: @ak+1jjwvhr11

Many more fools in Intel than at Trump towers lol

by
| | Reply
Post ID: @ae+1jjwvhr11

Post a reply

: