Imagine you had a business, and you went on a shopping spree and bought all these equipment's hoping customers would come but you then you realized you been an id--t, and you were going broke. Let's then assume you had 100 employees. How much of your problem could be solved with loosing 15 out of 100 employees? Shouldn't you be thinking I really need to let 40 to 50% go and only keep like 50 employees? Nothing Intel does makes any sense anymore.
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@1zyh+1u9J7ePa, good point. When I was being laid off in 2015, they were walking us out and bringing in new hires. I think we shed 12K people between 2015 and 2016 but couple years later the head count was actually much more than when BK started laying off. This time it may be different but i wouldn't put anything past Intel managers. Nothing surprises me anymore with Intel.
These workforce reductions play out over 2-3 years until the company is right sized. What happens is the ISP packages shrink so the money is good at present, In Year 2 it will be less and in Year 3 it will be even lower. What su-ks is some people try to bet on a turnaround but get burned in the end.
Nothing will be enough until the total BB population of Intel reaches 60K. Leadership knows that but are pacing themselves because of CHIPACT money and not to crash the stock to $1
Thank you @swr+1u9J7ePa and will do. Good stuff.
@OP+1u9J7ePa, great question. Is your business showing declining revenue? The bottom line, businesses fail due to declining revenue that causes declining profit margins. The “Going Concern” concept basically states that a company will be able to meet its financial obligations for the next 12 months.(1) If the company is not generating enough steady revenue, year over year, with a good profit margin to meet its financial obligations, eventually, no amount of expense cutting will suffice.
I highly recommend Post ID: @OP+1u7FZ6fZ. Before watching the video, open the latest 10-K to the PDF page 39 to follow along.(2) The video has a quick and simple analysis of what is occurring with Intel. Great perspective from an Intel customer with business experience. Warning, the video contains some “salty” language, but the business analysis is good.
(1) Kenton, Will. (2024, June 5). What Does Going Concern Mean?. Investopedia. https://www.investopedia.com/terms/g/goingconcern.asp
(2) 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
No.
This only the first pass.
15%, more like 51% will be fired!
In 5 years. Intel will be half the size it is today before this 15% reduction.