Intel CEO Pat Gelsinger On Potential Layoffs
https://www.crn.com/news/components-peripherals/intel-ceo-pat-gelsinger-on-potential-layoffs-the-unpredictable-economy-and-consolidation-in-the-chip-market
Check out the quote below -- It is a word salad. He says Intel will go into the internal foundry business because steppings need to be fully accounted for along with leveraging (i.e. outsourcing) third-party I.T. ...and this is big piece of why they are entering the foundry business. What? So, you are inefficient and evaluating the foundry model has made you aware of this and because you are so inefficient you believe you can enter a new market. Brilliant. Word salad.
Look for large cuts in IT and probably an outsourcing deal with Accenture or Deloitte where the IT functions are sent over to contractors in India. TD and Manufacturing would also be a risk... but given the new foundry model some of those heads are going to be needed to support new tool flows and customer facing design support services.
“We definitely see that there are efficiencies for us to gain as we go to this internal foundry model, where we see numerous areas in the company that we’re not as rigorous as we need to be. … We would run the factories more efficiently. Stepping changes being fully reflected internally in the cost of those will make us more efficient, leveraging third-party IT more aggressively will make us more efficient. And the combination of that is a big piece of why we’re stepping to this internal foundry model."