What is the headcount reduced so far vs the target? What do u expect from phase2?
11 replies (most recent on top)
Intel seems to have found a way to offset the loss of businesses i.e. laying off the low performers.
I imagine that some day Intel become an "elite" company, meaning a company consisting of only "high performing" employees who are all given high SSL and promoted every few years. Wow, what a company it would be?
@1kbq - yep if you are SLM or greater mostly you are safe. You get to sit and make spreadsheets of who should be fired and how to best offshore the work.
Focal will be ugly, this next couple years will be ugly.
If you are a big manager with a big paycheck and big group all is good, you sit at the top and cut. If you are FLM or lower it is the worst, get out while your skills are still valuable somewhere else.
Rumor mill says every VP has HC target. Some are shedding people with site closures and 'site strategies' along with ISP/VSP/ERP and depending on how many people take the packages they may be in Ok shape. I heard of one VP situation that unless 100% of packages are taken he will need to cut more. I believe others are in worse shape. This is what 'efficiency actions' are for.
My grapevine does not include project cancels. That is a different thing and I don't have any insight into how bad this may be.
There will be phase 2-5 in the next 4 years. This is only the tip of the iceberg that this ship has run into.
Laying off 12K will not be enough to support the future business model. Projections would have a total of 27-30K laid off assuming the four new areas of growth continue at a moderate pace. Semiconductor mfg is dead with the death of Moore's Law. Technology needed for 10nm and beyond has seriously crashed. Now too expensive to produce. ARM has caught up and taking Intel customers as Samsung and TSMC has surpassed Intel. Maybe PTD should have Ben resolving these issues rather than repeating their condescending views as how superior they are. They failed. That should tell you something.
ESP / VSP not enough will take it so VSP become ISP.
But business will continue to deteriorate. We already know tablets, laptops and desktop continue to drop and we expect them to continue to drop. Do the math of what another 8-10% volume will mean. THat means more underload in the factories, 10nm will be late and thus more price cuts and revenue drop.
More headcount cuts and the vicious cycle will continue. IoT, 3DNand ain't going to rescue the company. The cloud volumes while growing aren't enough volume to even fill the TD fab, so many many more paper cuts, death by a thousand paper cuts.
Well, phase 3 is profit.
Clear in a non-transparent way hahaha yep sounds like Intel to me!
What isn't know is how many VSP and ESP have been taken. I can tell you this, a whole lot of people have taken VSP and ESP. Intel will get to that 12000 mark by end of year so Round 2 will occur. If you were offered VSP/ESP....your head is on the chopping block. Intel has made this perfectly clear..in an non transparent way.
Good question