Last time we did layoffs manufacturing employees were largely untouched but this time they will get affected significantly as well.
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If the plan is to start selling off the fabs then dramatic layoffs would happen, removing all the excess labor and getting to where the fabs should have been all along.
There is a foundry meeting in the coming days, where LBT is expected to start describing how IFS will be restructured to be better benchmarked to a typical foundry.
To change TD and fabs to be competitive to TSMC will take several years, so this is something that may have a few big changes but otherwise will be largely under the radar, expect for those directly affected.
Expect to see increased use of contract workers and far fewer fab staff, with regional operations taking over what used to be fab specific.
IFS can not continue to cost the company billions it simply does not have to spare.
Fab techs think they are safe when that is where the biggest cuts are coming.
@em+1 The physical work will be aided by robotics, which with some tool mods should be able to eventually do most of that work.
Not saying this to be mean or anything. The sector demands it, and may be the most lucrative use case in all of manufacturing for AI and robotics.
Kind of amazing AI hasn't already overtaken a lot of fab related work.
The cost savings will be enormous.
"many functions are ripe for AI to replace the need for so many low-skilled and overpaid workers." - I am having hard time envisioning AI getting dressed in a bunny suit and doing equipment maintenance, figuring out which equipment to cannibalize for replacement parts, doing tube changes, polishing vacuum chambers and all that.
Fabs are not only bloated but many functions are ripe for AI to replace the need for so many low-skilled and overpaid workers.
Semiconductors are going to utterly transformed by AI. Once that gets started it will spread like wildfire.
Intel could end up with 20% to 30% of the current headcount.
I am expecting major restructuring of the fabs and for TD to be greatly reduced.
Wafer cost is not competitive and it costs too much to develop a new node. Plain and simple.
Good, TD needs a reality check. They’ve been insulated from all this BS for too long despite being a major cause of it
There is no way to cut 20k without cutting the fab.
That said, a lot of people in the fabs left after last time even if they weren't let go.
No one wants Intel Fab. No Skill and just burn money.
I estimate about 2k middle managers will go, and maybe 5k-10k in various product groups, especially where they are destined to be shut down or sold.
The rest is all fab, and especially in TD, because they did not get cut much in the past 2 rounds of Intel Fun events.
Should have taken the last package
Bout time
Good.