I'm pretty sure that layoffs will not suddenly stop despite the surge in profits. I'm just wondering how will Intel continue to justify them, as the need for a quick profits bump seems to be gone, at least for now. Mind you, I will happily eat crow if it turns out that we get a reprieve from constant layoffs after all, but I highly doubt it.
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What layoffs?
Constant layoffs will continue as the klown's fake news propaganda campaign as well as CFO Bob's to-the-bone cost cutting and number fudging is working to artificially prop up the stock price.
Last round was so successful that more is coming for certain, ACT2 a coming
They will claim "benchmarking" cost structures to justify stealth layoffs, benefit reductions, restructuring, hiring freezes, travel cuts, etc.
The best question: "Against whom are we benchmarking?"
The issue is not the layoffs nor the numbers to cut (just look at some prime examples on this forum), as there is plenty of material in Intel. The issue is rotten structures (mix of incompetence, broken values and corrupt HR, rigged Focals, nepotism in management, deep structures and bureaucracy) that most of the time results in laying off wrong people while retaining the ones that actually should be laid off (dead wood, pleasing s---..upper politicians, power point engineers, flat out literate ones and similar). Degree of this issue in Intel is way above the industry average and is at the root of so far unstoppable Intel deterioration and may be the key for the end of Intel in the near future.
Rising stock price will only mask Intel's long-term structural and fundamental issues, as well as delay much needed clean up of parasites in all orgs.
I'd think mass ACT-style layoffs are probably off the table for the next 2-3 quarters at least. Stealth layoffs will continue through 2020.
What layoff, intc just past 44! Intel’s doing great and fantastic. There is no layoff.
They had a good quarter because they laid people off and saved $350m
Layoffs will continue regardless of the financial situation
As long as BoD and BK get theirs, that's how they will justify it. Why else would a top heavy company with dead weight at the top give it's employees 2% raises and only layoff worker bees?
30% by 2020. CFO BS was very clear on his presentation. OpEx improvements are the norm.
Headcount at EOQ, per the releases, are:
1Q17 - 106.9
2Q17 - 100.6
3Q17 - 102.0
Q3 partially reflected closing Mobileye. Will be interesting to see Q4.
I encourage everyone to dig into the financials, or show them to a friend with a finance background. Ask them about Goodwill and Identified Intangible Assets. There is a LOT of money moving around, and if the internal 'TMG tax' is slowly (calculatedly) being lifted from CCG, then they can show great OpEx on the 55% of their business that pays the bills, while riding the Purley ramp of higher ASPs and datacenter transition. No matter how you cut it, servicing $27B in debt is going to be an issue.
If that's the case, why are you still at Intel? Let me guess: For the paycheck.
Yes well, what I see is that when Intel treated people properly there was an abundance of loyalty and pride. But now people just s--- down a paycheck and don't give a sh1t. Nobody want to own hard or important problems and mostly nobody cares if things succeed or fail. No urgency whatsoever. Why do you think that is??
How does Intel justify laying off people? Simple: Intel is not a welfare institution, so Intel will continue to remove teams or business units that are either not profitable or have no strategic value, and Intel will continue to remove low performers.
Even when ACT was announced, Intel was doing fine financially. The purpose of ACT was not a quick profit bump. Either you are not an Intel employee or you didn‘t listen very well when the purpose of those layoffs was announced.
Why would they justify it? Intel is obviously doing great with its current strategy so why deviate?