I have read on this forum that Intel initially had planned 30k layoffs but we had only 12k. Given the circumstances, how likely it is that headcount will be reduced to 50k?
God help if Intel actually lays off another 20k, with so many experienced CVs flooding the market.
Get out now while there are jobs out there to be had. There won't be enough life jackets when the ship sinks
I agree with @rxl. There is are no guarantees. We're in crisis and there is no leadership or vision. It's good to keep your skills sharp and stay prepared. Nothing is certain these days and staying agile and ready is the key.
Everything said on the internet is true.
Blaming wall street for anything is brainless. Seriously, it's what the dumb do when they don't feel like putting any thought into their arguments.
And to OP, yes, it's possible that layoffs will reduce the workforce to 50k next year, but I wouldn't call it likely. Layoffs are a near certainty, but I'm doubtful that it would reach the levels of ACT this year. Not that quickly.
The Kodak analogy is appropriate.
Though intel still has class leading process, factories and design here are the fundamental issues that I see haven't been addressed and big barriers for intel to survive.
Design and product teams only know how to do x86. Have no real capabilit to compete on schedule or efficiency against the cutting edge design teams in the world. Can Murthy fix it, give him 50%
Factories are inefficient and small compared to the completion. Efficiency can be improved but can you teach the TMG and many old dogs a new trick? I give that 50% is they tried. Second big issue is the small factories and their cost structure which has 0% chance to fix.
Lastly is technology, the intel team is so x86 focused with no concept of how to be customer oriented nor develop a flexible process. Look at their foundry failure. All they have done and know how to do is custom x86.
Conclusion is intel is like Kodak with little hope for a high probability evolution to new business and survival. If I needed more than a couple years I would leave
Kodak thought they could survive with the film business. Kodak= Intel, film= x86. Update your resume and start looking.
Tick tock tick tick tick tick tick...
You hear that? That's the 10nm bomb about to go off.
If your name is not one that Wall Street will recognize if you resign, and mine isn't, then the cold reality is that we're a variable expense. None of us are indispensable and while our leaving may cause a blip, Intel will go on. Brian, Murthy, Diane, a few others are the only ones that make the list. Bryant could retire and no one would care. Considering what just happened they could just as easily picked employee numbers out of a hat and still be left with lots of dead wood. All the time Intel will try to get us to believe we are a valuable resource until we get the tap on the shoulder and walked out.
I think a layoff will happen in 2017 when the next process node milestone is missed and the details of the Apple deal are clear. PC market will still be dead. TSMC will pull ahead. Expect Intel to lay off all they can without panicking investors. sorry, but we all need to look for a job now before the next flood of ex-Intel people hit the market.
Software is a growth area just about everywhere. So try to find opportunities to cross train into that space. Maybe even go for an internal transfer to a software job. That is the best way to get experience without having to take a paycut. And once you have the experience, you can go elsewhere easily if needed.
They are beholden to shareholders so the only way to make margins look good when there is no growth in revenues will be layoffs.
Absolutely correct. The layoffs will not end at 12K. The profit per capita key indicator shows Intel needs to get down to at least 80K employee base, assuming they are successful to margins predicted for the new four business pillers. If any of those pillars fail to meet expectations, the employee base will shrink to less than 80K.
@rxl is correct. If you are still at Intel use this time to figure out plan B update skills and resume etc. we need to keep shrinking
We really don't need so many managers who do nothing but sit quietly in meetings without contributing any ideas, flying all the world in business class, and creating power points nobody find useful while collecting fat paychecks.
New VP and managers are needed for fresh ideas to drive transformation into new product and technology.
Existing managers are not cut out to lead in this space. So they should go as well.
Get a plan b in place because this is just the beginning of layoffs. The current ineptness from the Board of Directors, BK, and his minions who are clueless with no vision or leadership skills will be the demise of Intel. Arrogance like 2006 when they did not collaborate with Apple to develop a chip for phones and Ipad's. Fast forward to today, they think their cash cow which is the server market will be dominated by Intel. They don't get the inroads that ARM is making in that segment.
IMHO, by 2020 Intel will have 50k emplyees worldwide. There's no growth and in order to prop up the stock they need to layoff employees. Next year they should start with VP's and middle managers.