Planned OpEx reduction for 2025 is 500M (down from $17.5b to $17b). Even if that all means cutting headcount, it would only amount at best to 3% of workforce, assuming everyone is of same OpEx cost.
Yet another fake news, just like all other acquisition rumors. Need some legal action against those fake news creators,
It is more complex than just looking at the $500M reduction in OpEx. It isn't going to be status quo going forward. You need to factor in removal of non-core product and the associated cost savings from this. If they drop 10-15 products quickly as has been stated in other posts this frees up a lot of cash that can be used for other efforts like workforce reductions. Severance isn't going to be as substantial as in the past. Lots of changes will be coming in a short time frame.
@at... expect performance management to reduce the severance. Plenty of weak performers out there.
Typical Intel id--ts here who just stick their head in the sand, and only hear what they want. If you actually paid attention and listened, Sweater Boy Judas explicitly said that because they don't have a HC cut target yet, they haven't baked in any severances and savings impacts into the forecasts yet. Therefore, the $500M this year and $1B next year are non-HC related cost reductions. If you want to keep your job, start paying attention more.
I suspect the leak was an estimate of the changes to be done this year.
I didn't think they could cut more than 10k in this quarter without disrupting the company, although clearly what is ultimately needed is far more dramatic than 21k.
I suspect they are reluctant to announce any layoffs, even though the cost savings are desperately needed and it would also give the market a sense that LBT is really fixing what is so badly broken.
So what I think is going on is that large reductions are on the way, but will be treated as performance related or business units being shut down. They don't want to describe that as more layoffs out of (misplaced) fear that it makes the company look like it is in the process of failing.
I could be way off of course. Time will tell.
Yeah it is fake news because some id--ts leaked the wrong number to the media. They will wait to see market reaction before correcting it to be exactly 30%.
$500mil savings for 2025 would mean,
5000 employees ( @100k employee OpEx cost)
3333 employees ( @150k )
1000 employees ( @500k )
20k employee cut for 500m savings would mean each employee cost is only 25k.
Stop the nonsensical statements!!
Bloomberg was the first to report it as someone else stated. They are one of the most respected business news sources. They wouldn’t have reported it without verification. They aren’t a tabloid.
Not fake news. It came from Bloomberg. This was leaked on purpose. Likely by the same person who leaked it last year to Bloomberg.
The stock is gonna tank if everything said about the company keep being proven to be nothing more than the market treating it like Gamestop, while the company mumbles about somehow getting better at some point in an undefined future.
Maybe LBT should stop channeling his inner Pat.
Cope harder buddy.
OP are trying to convince yourself?
Dave shouldn’t be on CNBC he should be on SNL
It's not fake news. If it was he'd flatly deny it. Dave was on CNBC saying that they are still working on finalizing the numbers.
Read the guidance for Q2 and tell me again with a straight face that OpEx reduction will stay at 500M.