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Posted on 08/01/2024 6:08:47 PM PDT by CFW
Intel’s on a long, long road to recovery, and over 15,000 workers will no longer be coming along for the ride. The chipmaker just announced it’s downsizing its workforce by over 15 percent as part of a new $10 billion cost savings plan for 2025, which will mean a headcount reduction of greater than 15,000 roles, Intel tells The Verge. The company currently employs over 125,000 workers, so layoffs could be as many as 19,000 people.
Intel will reduce its R&D and marketing spend by billions each year through 2026; it will reduce capital expenditures by more than 20 percent this year; it will restructure to “stop non-essential work,” and it’ll review “all active projects and equipment” to make sure it’s not spending too much.
“This is painful news for me to share. I know it will be even more difficult for you to read,” reads part of a memo from Intel CEO Pat Gelsinger to staff, which you can also read in full at the bottom of this post.
The company just reported a loss of $1.6 billion for Q2 2024, substantially more than the $437 million it lost last quarter. “Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones,” admitted Gelsinger in the company’s press release. “Our revenues have not grown as expected — and we’ve yet to fully benefit from powerful trends, like AI,” he writes in his employee memo.
(Excerpt) Read more at theverge.com ...
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DEI dead, too?
What he's telling us is that they are laying off 15,000 people today, and when they do eventually fully benefit from AI, he will layoff a whole hell of a lot more people.
https://download.intel.com/newsroom/kits/diversity/pdfs/Intel_LGBTQ_Initiative_backgrounder.pdf
No wonder they are going broke.
amd and nvidia have been eating intel’s lunch.
Other headlines I’ve seen in the past hour:
“Amazon shares pummeled after revenue miss and lower guidance.”
“Japanese stocks open 5 percent lower.”
“Dow loses 500 pts, economy suddenly looks weak.”
“ISM Manufacturing index comes in soft.”
And cutting back on R&D may also not be a very good idea.
You forgot new home sales not looking good.
“US Stocks Drop as Economic Concerns Mount
The three major US indices erased their previous session gains to close sharply lower on Thursday, with the S&P 500 declining 1.4%, the Nasdaq dropping 2.3%, and the Dow Jones sinking 500 points as fresh data raised concerns about the economy’s health. The ISM Manufacturing PMI revealed a larger-than-expected contraction in the manufacturing sector, marking the deepest decline in eight months, while employment levels fell to 2020 lows. Initial jobless claims rose to 249K, the highest in a year, and labor costs increased at half the market’s predicted rate for Q2, despite productivity improvements. The Federal Reserve hinted at an impending reduction in borrowing costs.
In contrast, Meta shares rose 4.8% after posting better-than-expected second-quarter results and optimistic guidance, while Qualcomm fell 9.4% amid warnings about trade restrictions. Nvidia also struggled, losing 6.7%. Apple, Amazon, and Intel are set to report their quarterly results today after the market closes.”
I’m still half-way convinced the Democrats will see the writing on the wall in regards to the economy, realize their lies aren’t going to work much longer, and dump the entire thing in Trump and the GOP’s lap.
We will then see headlines such as “Trump’s economy continues to worse; Do voters have buyer’s remorse”?, as they ignore the Biden policies that have brought us to this point.
I don’t recall ever working for a company which could afford to hire non-essential workers save one, a company from hell who hired HR managers from hell.
“You forgot new home sales not looking good.”
Yeah, I left that off along with the increasing number of both business and individual bankruptcies. There is a lot of economic data that shows we have a world of hurt coming our way.
All thanks to the progressive left and their media mouthpieces.
Don’t forget TSMC.
At least Gelsinger was able to afford to not only go to Davos, but to be a speaker so he could share the secrets of running a successful company with the other ruling elites.
I work for a BIG company that makes chip making equipment. Our biggest customer may bbe TSMC as well as Intel....amongst others. Lots of uncertainty now in the chip/chip making industries. Fortunately, if layoffs come out way, I’m not too worried as I’m on the brink of retirement.... probably at year’s end.
DEI started at Intel when Obummer became President.
One of his staff members became head of HR at Intel and its been downhill since.
Glad I got out in 2015
What the hell is non essential work???
Dont’ worry folks. The H1Bs and Indian invaders will still be employed.
I was with Intel in 2021. They could not make chips fast enough. They had a 6 month back log on orders and they were spending money heavily to expand production. Its sad that they have come upon hard times. Obviously for some reason the demand for chips has shrunk.
If they layoff only the deadwood (yes, even tech corporations such as Intel ACCUMULATE deadwood) and the politically connected sinecure hires it will be good. I suspect that won’t be the criteria for selection of those to be separated.
They will plan to “roar” back in the 2026 Mid-Terms to take the House and Senate and the White House in 2028.
I'm sure that the NIH has another virus stirring up in the Bullpen ready to go as well if Trump wins.
And they will predictably blae Trump for the economy when he wins, but then say Biden fixed the economy when after Trump’s first year he turns things around. They are beyond delusional.
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