Thread regarding Intel Corp. layoffs

Everyone in TD should be dusting off their resume.

TD spending is completely out of control, some of which has been about attempting to catch up to TSMC but completely unsustainable as a Foundry.

If the issue for Intel is one of bureaucracy and delusions of past success, then TD is maybe the costliest example, and I'd expect any corporate streamlining to bring TD spending in line with TSMC.

The company needs a significant headcount reduction to scale down to the revenue it is able to achieve with x86, and that has to come from Foundry.

Product divisions have always had methodology for rationalizing headcount to products, and while there is room to do more, the full weight of further reductions and elimination of non-productive R&D falls squarely on TD.

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| 1241 views | | 8 replies (last December 4, 2024) | Reply
Post ID: @OP+1vNnl5Mw

8 replies (most recent on top)

To be sure, on the product side there is a need to stop work where it was a mere adjacency and stop pretending that Intel can provide the entire datacenter product portfolio.

That only was ever feasible when Intel had CPU dominance, but now that GPU is dominating the spending, all the loss leader products need to be sold off or cancelled.

Likely there are other companies who can use the IP and may even want the products.

As with the rest of the company, the product sprawl is due to the desire of upper management to build empires, to justify higher compensation and set them up for promotion to executive positions at other companies.

This is the kind of management behavior seen at other failed technology companies.

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Post ID: @1dej+1vNnl5Mw

Who has been running TD?

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Post ID: @fcv+1vNnl5Mw

Dear ProdCo, please check your numbers. Last time I checked the ratio was not in your favor. I never saw such a waste of money as they do in ProdCo. You need new server? Sure there is a $1mln. New cutting edge technology? Why not here is your $5mln. Oh you do not use it after a month? That's ok.

The thing is that, your products even that they are done in TSMC are sh-t, and this is due to ProdCo issues. AMD could pull out ZEN. It's working, it's better in performance ~30%, the same process used, no RMAs.
Now you have to pay fab for yours failures, so it is costly and margins are tanked to the ground.

The other things are all those software groups, where intel pushed train of money and just burn them without checking the outcome.

There will be layoffs, brutal ones - in DCAI, NEX, SMG, SAT and especially in CCG. MJ is interim CEO to cut you off boys.

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Post ID: @kkv+1vNnl5Mw

Bring It DOGE !

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Post ID: @owa+1vNnl5Mw

@mux #cope 😢

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Post ID: @lee+1vNnl5Mw

GloFo has 13000 employees and that includes everyone from HR, Finance, Sales and other support organizations. I expect Intel TD to shrink to about 2000 engineers and 6000 techs with a couple more thousand support staff within the next year or two.

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Post ID: @sdr+1vNnl5Mw

I'm not saying the product divisions are perfect, but they have become more lean over time, and historically did not keep headcount on old products.

The product divisions do headcount actions all the time, year after year.

TD and the Factories have been insulated from the reductions over the years, with minimal change to headcount structure even when shown that there are more efficient ways to get the job done.

Factory managers are now thinking about cost and profit margins, but in the past were incentivized to focus solely on max outs, so always wanted more headcount than was needed to produce output sufficient for actual, proven demand.

TD has over the years metastasized into an unwieldy conglomeration of projects and facilities, many of which are far removed from getting a technology node to production yield.

If TD were brought down to be comparable to TSMC or Samsung, Intel would be profitable. No other change needed.

TS is draining the life out of the company. Not the first case of a company driving itself to ruin with excessive R&D spending.

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Post ID: @tnv+1vNnl5Mw

"Product division" fu---d Intel due to weight of its no performing employees and set TD on a path to develop processes to make up for design shortcomings.

Employees of "Rationalized" product divisions should polish their resumes and start applying to other companies, i am pretty sure they will find out that all other companies will avoid them like a plague.

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Post ID: @mux+1vNnl5Mw

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