Numbers don’t make sense.
With 15% headcount reduction (ignoring the severance cost) I calculate about $3 billion in savings from HC reduction.
Still $7 billion left.
I estimate austerity will have to come back. 25% reduction in salary on average would be required (Lower for lower grades)
Highly recommend Post ID: @OP+1u7FZ6fZ. Before watching the video, open the latest 10-K to the PDF page 39 to follow along.(1) Great info, in my very humble opinion.
(1) Intel Investor Relations. (2024, January 26). SEC Filings Form 10-K. https://www.intc.com/filings-reports/all-sec-filings/content/0000050863-24-000010/0000050863-24-000010.pdf
Cut the all-you-can-eat shrimp before it's too late
Reduce all their VPs and above salary by 50%, reduce redundency at HQ by removing TAs/CoS and combining Groups to increase GM's scope..
No more Private Jets/Business Class For Travel; Do away with Amex for travel bookings and book directly with Airlines and Hotels.
Remove the Once/Twice per year gatherings for VPs and above in US...if we are asked to do Zoom meetings, why are these clowns able to meet Face to Face?
see? math wasn't that hard. I don't know why excel sheet warriors like BS are paid that much.
Intel is holding its employees as hostage to demand government money. Similar to ransomeware tactic or corporation criminal te------ts.
They can always cut down salaries for all employees who will be left over and get rid of bonuses next year. Pat said it’s a clean slate revamp. So, anything is possible to trim expenses.
@OP+1u6L3sqs, good point, the numbers don’t exactly add up. I had to read the press release a couple of times to get some answers. The breakdown comes down to savings in OpEx, CapEx, and Stockholder Equity.
The Stockholder Equity part is easy. The quarterly dividend is $0.125 each quarter or $0.50 forward dividend(Year). Latest 10-Q shows 4,276,000,000 shares outstanding. Savings: $2,138,000,000.
Operational Expenses gets a little tricky, because we only know the headcount reduction part; could be other stuff that is considered OpEx. I’m reading reductions of 15,000, ”OR” 15%. The latest 10-K and DEF 14A (Proxy Statement) show 124,800 employees; 15% = 18,720. In the ”CEO Pay Ratio” section of the Proxy Statement, the ”median compensated employee is $100,100”.(1) Savings @ 15% HC reduction and using the “median compensation”: $1,873,872,000.
The remaining cost savings includes focusing on ”capital efficiency and more normalized spending” to reduce Capital Expenditures by 20%. The latest 10-K lists the 2024 Capital Expenditure commitment at $20.4 Billion, so a 20% reduction in 2025 of $4.1 Billion. Finally, reduce non-variable COGS by $1 Billion. The ”Key Priorities” are listed in the Intel Press Release.(2)
Savings:
Dividend: $2.1 B
Headcount: $1.9 B
CapEx Commitment: $4.1 B
COGS: $1.0 B
Marketing/SGA/Bananas/Coffee/ Other OpEx: $.9B
Total: $10.0 B
(1) The “Median Compensated Employee” includes ALL employees, excluding the CEO. Compensation typically includes pay, bonuses, benefits. This metric is used to calculate the CEO Pay Ratio.
(2) Intel News. (2024, August 1). Actions to Accelerate our Progress. Newsroom. https://www.intel.com/content/www/us/en/newsroom/news/actions-accelerate-our-progress.html#gs.ddo0i2
Select Intel Investor Relations SEC Filings links:
https://www.intc.com/filings-reports/all-sec-filings?form_type=10-K&year=2024
https://www.intc.com/filings-reports/all-sec-filings?form_type=10-Q&year=2024
https://www.intc.com/filings-reports/all-sec-filings?form_type=DEF+14A&year=2024
I think you answered your own question. It's more than 15%
There will be more layoffs coming in a few months again. This is now Intel's new normal.
Get more billions in taxpayers money.
$2.1 billion savings in dividend assuming $0.50 per share x number of shares
@hwu, kwb, I know your being funny/sarcastic but for those curious I calculate about $28 to 56 million savings per year for no coffee/fruit assuming Intel can’t get good deals for those items
@nez: cutting capital is usually a bad thing. Unless Intel is bloating their equipment request, they will just hinder engineering activity. Impact to product delivery
@rwa: good point, not sure on dividend savings.
$4 to $4.5 billion in reduced capital expenditure.
$1 billion less in sales/marketing.
What's the annual save from the dividend cut?
Dude it was the free Bananas. That's gotta be $5 billion right there! Lol
You forgot all the savings from the coffee being cut..
Maybe sequential CPM's for tranches of 15K and another 15K employees over Q1 and Q2 of 2025?