There must be something else being planned that Intel has not announced major layoffs to push the shares up just like Meta.
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But people don't leave voluntarily these days. Stick to your job is the winning strategy, unless you're a star. Eventually, Intel will have to pay sevance.
@cid+1mmOcgVK, attrition isn't a slow burn on cash. If you lay people off and reduce the package to only the 60 days required by law then you have an ROI on the layoff in less than a quarter. Attrition will probably never reach the numbers needed and the dead weight is a constant drain on the company financials. Pull the band-aid off and get the pain over with all at once. Waiting to do the much needed huge layoffs has now put Intel behind the competition in another key area.
Thousands have been laid off
This will lead to the demise of the company...
By not cutting headcount and continuing to burn through cash the profit and cash flow picture looks horrible.
At some point when the demand for PCs doesn't come back and/or IFS ramp doesn't pan out, the company will see big increase in cost of capital to fund the boondoggle.
Who on the board is paying attention to the huge risk the company is adding, pushing probability of bankruptcy way up!?
they want Chips Act Money. I work in Government Affairs and speak to Bruce A 1-1 each week . They cannot afford to risk anything about Chips Act subsidies. This is the biggest reason
Layoffs means a bonfire of cash. Attrition means slow burn. With its’s cash reserves, Intel can only afford slow burn.
Intel has laid off thousands over the last 6 months...batches at the end of Dec, Jan, Mar, Apr..some voluntary(CPM) and some not.
@heu+1mmOcgVK: Religious and arrogant. You don't know what these two words mean.
@ohb+1mmOcgVK Not how it works at all. Two separate organizations are less efficient - they require more support services than a vertically integrated org.
Two separate sets of finance, HR, IT, management, accounting, legal, etc, etc, etc. to use your pizza analogy - two separate pizzas give the illusion of efficiency, but if you measure the circumference of both pies, you’ll realize it’s the same as the 16”.
Papa Pat is religious and too arrogant.
🤣 nice pizza analogy bruh... this is the color commentary you get when you hire engineers and they try to explain how business works. 🤣
It will come naturally when the company inevitably breaks up.
It's like cutting pizza: when a 16 inch pizza becomes two 8 inch pizzas, the area reduces naturally by 50%.
This is what will happen to Intel.
Arrogance. Arrogance and stupidity.
- Andy taught Pat to invest/spend your way out of a recession. Bad idea wo products.
- Hope. Pat hopes PC demand will come back quickly. It won't.
- Pat needs the HC to help with the IFS moonshot. It won't make it to space.
Idk if Intel will do major mass layoffs like Meta or Amazon. A couple of reasons:
- Optics: looks bad after pitching and accepting massive federal grants (CHIPS) to build new fabs in US and scale for foundry - that’s the type of press political pundits will latch onto.
- ACT: Intel is still reeling from these layoffs over half a decade later. It created massive brain drain, loss of employee trust and morale, and contributed to a lot of our top talent leaving to the competition. Mass layoffs inevitably have collateral damage - it’s almost impossible to reliably lay off only those who deserve it when we are talking 10s of thousands of impacted employees. I think (hope) we learned our lesson there.
I think Intel will be taking a quiet, rolling, more methodical approach. Eliminating unnecessary/redundant teams/roles, more aggressive performance management, business unit consolidation, additional outsourcing/offshoring of support services (IT, accounting, some finance functions, etc. - as US employees attrit, backfill with cheap labor from Central America or Asia) all while keeping external hiring frozen for the rest of the year.
Intel needs to pay billions in sevance. If people leave voluntarily it’s cheaper