Thread regarding Intel Corp. layoffs

~30k, across functions/groups and geos, by end of Q2. Severance package is 1 month less than last yr CPM. Confirmed

Intel fab org has always been a one-off versus the rest of the industry. I would not be surprised at all if Intel over the next two years migrates to that model. It is more efficient. That is the bottom line. Cost per wafer matters now. Why do you think they put NC in charge? This will be good for some and really bad for other groups.

I think Intel will go to 80k then cut from there

@b9+1 I expect all of IFS to be outsourced to contractors to the largest extent possible.

The fabs currently still use the same staffing model as they had at least 15 years ago, only tinkering around the edges with a bit of contract labor.

This is not how foundries are staffed.

Engineering may be where the most disruption happens, at least at centralized sites like OR and AZ. The fabs seem likely to lose most of their direct engineering staff to regional organizations. The cost of each fab having totally redundant staffing exceeds the benefit, and foundry will be profit challenged until this is corrected.

Fab management might be hoping that increased wafer starts will put off the day of reckoning but I suspect LBT (and maybe Naga as well) sees through that.

Support groups have already reduced their fab-specific staffing, in order to meet benchmark cost, so that is not coming back any time soon.

Product groups will in many cases be shut down, as the company makes 'hard decisions' about what is core and what is not. There will also be more outsourcing of basic engineering not considered to be a core competency or something that Intel can do better.

It will take some time but LBT is clearly intending to go through the entire company and do some housekeeping like Andy Grove would have done.

He might just save the company in the process, and put an end once and for all to the IDM mentality.

Fab construction org is moving to a leaner model with “mobile” engineers and heavy contractor supplementation where the work is. 100% confirmed. I anticipate a similar model coming for the fabs.

Need to get to 60k to justify revenue...
Do the math...

Only those who failed to take the package will be at risk of being laid off.

Ya Should Taken The Package!

10-20 k ballpark

@aq Its not like they dont have money to pay severance packages. All the money is hoarded by bureaucratic ELT who would risk heading into bankruptcy than retaining employees.

No packages this go around. Can’t afford them.

@aj+1jqex1awc - look at past 3 quarters of earnings. Intel took total charge of $3B to layoff 15k employees. I know someone in Folsom who worked for Intel 28 years and his package came around 500k including health insurance and accelerated rsu vesting benefits.

50K in 3 waves of ~15K

No severance packages at all

@ah+1jqex1awc Nonsense of course.

15K was less than a billion and these packages won't cost as much

10k is probably 500 million. Intel can get that from under the seat cushions.

Board member Stacy Smith might even argue it is contra revenue.

None. Intel doesn’t have money to pay severance package. For 10k layoffs Intel needs $2B.

I don't think any specific number is known by even HR but would expect the immediate impact to be at most 10k.

The caveat is if some decisions are immediately made about shutting down labs and product groups, or possibly shutting down one of the older fabs.

Layoffs from restructuring could go on for several years, especially in the fabs where shifting to a foundry headcount model would be an epic change and would take years to complete.

I agree that getting Naga at the top instead of Navin is going to lead to a change in the outdated staffing model the fabs have continued to use to this day.

If Ron Caufield comes in as IFS CEO then that would be to sell off the non-EUV fabs to GF, so not immediate layoffs but most of the workers of those fabs would become immediate contract workers.

Any product groups to be sold would take some time as well.

So give it 2 or 3 years and the company is likely cut in half.

You prob should’ve taken the package last time

@a7+1jqex1awc where did you get that information from? is it reliable?

13092 to be laid off. packages will vary but about 50% from last CPM wave. confirmed.

You may never again see the kind of rewards in severance packages.

Those really were a holdout from when Intel dominated the market, as way to reward retirees and others with a lot of years. Made for a great way to retire.

They will still do some kind of compensation for years at the company, but all those other add-ons are unlikely. They really were just excuses to help pay the taxes on the package.

Particularly in IFS, that will become a lean environment over time. Most will be converted to contract workers, with very few 'blue' badge employees. Look at GF for clues to what IFS will be in 5 years.

All the bloated and unproductive products and groups which only existed to try to be an end-to-end datacenter solution? To be gone, and what remains will include much more outsourcing if not directly replaced by AI.

But then AI and robotics are about to replace many roles at Intel, and elsewhere.

Watch what ELT depart and look at their orgs, because that is most likely where the big change is coming.

Note that it started with Ann departing, and Naga replacing Navin at the top.

Fab will be restructured to be more consistent with a typical Foundry and that will be huge.

A few thousand middle managers would go, and some product groups may be shut down or sold to other companies.

Thing is, everyone can see what needs to be done. Just needed good management to do the obvious.

Buckle up buttercup it's going to be a bumpy ride.

50000