Thread regarding Intel Corp. layoffs

I’d expect cuts to accelerate in the 2nd half, as it becomes mainstream to all that we are hemorrhaging cash

Will see more layoffs down the road as AMD and Nvidia are taking our market shares left and right.

PG likes to kick the can down the road in the hope PC sales will rebound and Intel can live with the bloat

All chips are on the chips money

At the stockholder meeting they are more concerned with claiming China is evil and investigating how evil China is.

10B was a talking point for wall street by the CEO. Lets see the breakdown, how about some transparency.

Layoffs are on-going and will continue for the next 2 years at least.

@kmw+1mRHsmaW. Seems like you just had a major stroke. Go and get help asap. U still there and okay? MAGA, White nationalist and DOD and Pentagon in bed with Intel?. Dude, whatever you got as brain got fried by the bad stuff.

"It is run by white nationalist propaganda." @kmw+1mRHsmaW

That's funny. LMAO

You won't be able to count on the government... not with $1 Trillion in interest payments per year (larger then military spend) and deficit running over 10% of GDP...

Countries GDP get cut in half when Debt / GDP cross 100% (we are there folks)...

Countries generally go bankrupt when they exceed 4% deficits consistently...

If we/SMG cannot sell SPRs, Gaudi or any of Intel products...more cuts are to be expected.

Pat is a delusional evangelical hoping for the apocalypse. Intels core business is oriented towards that strategy and ties into pentagon/dod propaganda. Intel is no longer run by profits and losses. It is run by white nationalist propaganda.

Happening now, and will continue until Intel finishes selling off all of its assets.

Read the last few post and it is obvious, Pat and Intel have no chance with IFS and IDD2.0

Ah for Memorial Day, a reflection on the death of this once great company.

so what you are saying is that Pat is like the little boy who stuck his finger in the di-e to try and stop the leak?

I find it striking and ironic that Moore's Law is the very undoing of the company and here is why.

Intel is a company that is vertically integrated with manufacturing. However, each new generation of process technology shrinks the die size so, you need less capacity to produce the same number of widgets as before. And the widgets are becoming commoditized and the compute power needed for the core application (PC) is waning. In data center MIPS/watt is the driver and IA isn't suitable. Each node also becomes increasingly expensive. To make matters worse, in SI manufacturing, ASML makes the core element - EUV and Intel adopted it late and that EUV is already in full production at TSMC.

Of course all of these things were easily known 10 years ago. Still, Intel could do nothing about these forces. It also failed in every way to expand the product set beyond the PC and server.

I'm afraid the very vertical integration based on a Moore's Law shrinkage model is now the undoing of the company. Yes, Intel has failed to execute in multiple areas, but the fundamental business model is broken and either way ARM and commoditized (if not expensive ) fab has pushed the power away from Intel and toward TSMC, Apple, NVidia etc., Intel's model has been hollowed out from both below (manufacturing) and above (Apple, etc.,). You might be able to delay the inevitable momentarily with such things as tax breaks based on Nationalistic paranoia... but, the gov't is broke and the politicians will move onto the pet project soon enough.

does the BoD and ELT have no common sense ?

Let's assume the BoD has some smart people on it... (I won't comment about the ELT which is filled with DEIs that don't have industry experience...)

The BoD had BS and they recognized the wheels were coming off.. at that point you either a) cut cost dramatically and cash cow the business... maybe drop manufacturing and use TSMC OR b) you buy into the 'bet the farm' on the field of dreams IFS strategy that Pat was pushing...

If you go with option a) you have a slow grinding decline into oblivion... or b) you go with the risky strategy that has 1% chance of succeeding, but if it does the company survives.

It is a dilemma -- a choice between two nearly equally bad alternatives.

@ilq+1mRHsmaW does the BoD and ELT have no common sense ?

Intel in manufacturing is doing RD for what TAM, maybe a couple hundred million units while TSMC is doing it for a BILLION and Apple, MediaTek, AMD, Nvidia, Microsoft, Google, Tesla, Qualcomm, Broadcom and so many more l. Who thinks Intel has a chance to recoup investments or even compete on yield learning against that scale or breadth?

In design they compete against trillion dollar companies like Nvidia, Microsoft and Aple and so many other higher well funded and talented companies.

Pats only hope is of WWIII breaks out, what kind of business strategy is that, beyond fantasy

PG seems to be trying to run Grove's playbook of investing your way out of a slump...

but, that playbook was formulated in bygone era where Intel had 50-60% gross margin and PC demand was parabolic.

and back when Grove did it, he never managed to run quarter with anywhere near $3B in losses.

SATA OCTO, according to Greg Lavender's latest update meeting, will not participate in this before 2026. Check the video yourself to confirm what I said. This group shou be one of the teams that need to be cut the most...

It is hard to overstate the fiscal irresponsibility of the company. Last year, after the big ramp in PC sales due to Covid the CEO in Q1 stated that demand looked very strong.

The hiring ramp continued well into the year. Only to have the company hit a brick wall late last year. The there was much talk of cost cutting and layoffs. Yet here we are, the latest earnings results from Q1 showed headcount had actually grown from Q1 2022. That is ridiculous.

So, the employees have been demoralized and waiting for reorgs and layoffs. Productivity has ground to a halt. Wall street isn't happy because they see the company good too slow and betting on hope of demand rebound and IFS glory. Not gonna happen.

So the company is bleeding cash, had to raise 10B in debt this year at higher rates and the can gets kicked down the road.

If demand were to spring back and IFS take off like SpaceX then having kept all the employees will be seen as brilliant. On the other hand, since we all know PC demand is still in the dirt and IFS simply cannot ramp for at least 2 more years then the slow pace of cost cutting may very well be sealing the fate of this once glorious tech giant.

They are already happening. They are doing the BUs and Factories next. Factories will only be involuntary as they are wanting to keep more talent. Next will be the support orgs again …. Finance and supply chain.

They want to keep it as quiet as possible since they are getting public assistance. But they also hope to drive employee attrition through the entire process.