First off, Qualcomm thanks Intel for picking this a--hole. He has zero leadership skills. Barks order without a whip in his hand. Glad this was not early 1900s! In Qualcomm, he drove everybody under him to a high stress corner needlessly. He doesn't have the vision except in seriously believing in DOWNSIZING previously existing group. Did Intel even ask for peer reviews. Because he would have been a STRONG NO. But he probably had some connections like he always had. Otherwise a man like him should have never risen to the level he is today. Sorry Intel. Now you have to pay for it.
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@2vxb: I dont think Murthy ever interacted with standards/companies outside of Qualcomm to bring business in. He was just in the execution team with a fast time to market goal (at the expense of family and employee moral). That I thought was his role in Q.
What actually needs done is the firing of lots of VPs, because there's too many of them and all of them are too expensive.
Murthy's contribution to QCOM mobile growth has been grossly overestimated. He was there in the right place at the right time. QCOM growth from 2009 to 2013 has been fantastic due to the adoption of LTE worldwide and the need for multimode technology support. Murthy grew up the ladder during this period and was crowned king of QCT in early 2014. After 2014 onwards he has torpedoed the company and its resources to capture more of the mobile market - power amplifiers, switches, front end components etc while Christiano wanted QCT to expand into lateral markets like drones, IOT, automotive etc. None of Murthy's picks were a success. QCOM is still cleaning up his front end component mess, but they are now focussing on Christiano's pics which seems to be a much better option for them. Murthy's biggest mistake to date was the transition of SD810 from 32 bit krait to 64 bit arm core. This hit the company big time and they lost Samsung. All reviews within the company pointed to Murthy being the root cause. When the time came, Steve M decided to keep Christiano and kick Murthy out. Murthy can be credited for excellent execution skills though, he chopped down the product to market timeline within QCT from 18 to less than 10 months. However most of this came with severe impact on resources and most of the good ones decided to leave ....
I just hope Murthy's has learnt something from his QCOM stint and doesn't repeat the same at INTC. Good luck to all my friends and colleagues at INTC. If i were you, i would work hard to get a job now and use the INTC layoff program to get the severance money and get out as soon as possible ...
we got murthy.... but to be fair, this could just be payback for giving Qcomm Anand :)
The company needs fundamental change if its to thrive, i suspect this is BK and the boards thinking... i'm not convinced Murthy is the answer, but at least he's getting rid of stagnant management & associated practices is a step in the right direction. I'm sure Intel will now over correct and find itself unbalanced and then needing to hire again - but it is increasingly an 'old boys club' with very old thinking behind the companies approach... If the cuts are on the scale rumored, then i hope they are targeted and not arbitrary - there are an awful lot of good people at the company. The important thing, is that if they are cutting large scale headcount, they need to cancel programs accordingly... they can't expect a smaller workforce to pickup the 'slack'.... Intel employees are among the hardest working I've known... asking for more, is not reasonable. There is quite a lot of headcount fat via large failed acquisitions btw.. i wonder if they will announce some divestment's.
@lvk with as many VPs that they have, a span of 8 would be level of 2.
There is no "the right thing". Murthy did the right thing for himself - but the wrong thing for shareholders by taking the job. Intel execs may not have a great track record but don't underestimate Murthy's ability to do worse! Different isn't necessarily better. Mr. drone/reality show's performance so far should attest to that.
I think Murthy did the right thing - accepting the job offer from Intel. Who wouldn't? He also did the right thing by trying not to do the same things like other Intel executives.
BK should be given all the credits - good or bad.
http://www.fool.com/investing/general/2016/04/17/is-intel-corporations-mobile-strategy-falling-apar.aspx
Krzanich seems to think hiring Renduchintala, who oversaw much of Qualcomm's domination of the mobile chip market, would help Intel become more competitive in smartphones. Back in 2014, Krzanich also hired Qualcomm's Amir Faintuch to co-manage its Platform Engineering Group, which designs the SoCs for Intel's IoT, wearable, and next-generation client and mobile platforms.
Krzanich's efforts to hire outsiders to disrupt Intel's insular culture were admirable, but I think poaching executives from Qualcomm wasn't the right play. The problem is that Qualcomm has been losing market share over the past few years to nimbler rivals like Taiwan-based MediaTek, which won over many OEMs with its cheaper chips. As for Faintuch and Renduchintala, both executives oversaw the development of the maligned Snapdragon 810, which experienced overheating issues and likely influenced key customers like Samsung to use in-house silicon instead. Top Qualcomm executives are also used to big compensation packages -- that's probably why Intel paid $25 million to bring Renduchintala aboard.
12% is figure VPG biggest hit
Intel will speed up going down the toilet tube with this Indian guy. What made BK to hire him and think he can save the world? It does not make a common sense to me. Another great American technology company is going, going ... Gone.
to be honest intel could close mobile and add 25% to he stock price. get a licensing deal with Qualcomm. murthy is the man to execute this - BK
Murthy will gut but bk will be forced to announce - you watch on Tuesday - especially tune into the investor meeting
Without knowing a darn thing, @-mcm, that was my first thought as well (he was hired as the hatchet-man so BK wouldn't have to. After all, it's not BK's doing if someone else does it, right? ;)
But in all honestly (my opinion only) cuts need to happen to get rid of a lot more management, not the worker bees. Worker bees do the work, management, well, manages (sort of). I just see too many layers but what the heck do I know about running a business the size of Intel. Absolutely nothing. :)
I was under the impression that Murthy was hired specifically to gut the employee base so that BK did not have to get his hands dirty. With that end in mind, Intel leadership got exactly what they wanted with this hiring. What's the latest estimate now? 107k employees down to 85k by year's end?