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Intel is laying off over 15,000 employees and will stop ‘non-essential work’
The Verge ^ | 8/1/24 | Alex Castro

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 ...


TOPICS: Business/Economy; Culture/Society; Front Page News; Government; Politics/Elections
KEYWORDS: bidenlegacy; bidenomics; economy; gowokegobroke; intel; recession
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To: ClearCase_guy
...eventually fully benefit from AI...

Intel was already using AI in 2021 to find defects in chips and what went wrong.

21 posted on 08/01/2024 6:37:59 PM PDT by Nateman (Democrats did not strive for fraud friendly voting merely to continue honest elections.)
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To: Zathras

Large corporations are very difficult to manage during the best of times.

DEI just makes everything much worse—eats away at morale which is a very difficult issue to detect and even harder to correct.


22 posted on 08/01/2024 6:38:22 PM PDT by cgbg ("Our democracy" = Their Kleptocracy)
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To: Vigilanteman

If that company received $8.3B Biden Bucks they could
Investopedia
3/2024
The U.S. government awarded Intel up to $8.5 billion in CHIPS Act funding to expand domestic chip production facilities.
Intel could also be eligible for an additional $11 billion in loans.
This funding will support the construction and expansion of Intel facilities in Arizona, Ohio, New Mexico, and Oregon, creating nearly 30,000 jobs


23 posted on 08/01/2024 6:46:10 PM PDT by griswold3 ( Robespierre and Pol Pot were “unburdened by what has been” Harris the "Year Zero" candidate)
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To: CFW

The CHIPS act is dead. Long love the CHIPS act....


24 posted on 08/01/2024 6:47:13 PM PDT by Organic Panic (Democrats. Memories as short as Joe Biden's eyes)
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To: Kevin in California

“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.”


Probably a good plan.

Here is the Amazon article:

“Amazon Slides After Missing On Revenue, Guiding Below Estimates Despite Solid AWS Results”

https://www.zerohedge.com/markets/amazon-slides-after-missing-revenue-guiding-below-estimates-despite-solid-aws-results

If consumers aren’t buying from retail stores, and they aren’t buy from Amazon, then they are cutting back drastically and purchases nothing at all but essentials. In my area, a furniture store that had been in existence since the 70s just closed.

Several more local restaurants are closing as well. One was a pizza shop just on the edge of the college campus and two blocks from the main library. That was surprising since the college students are moving into their dorms this weekend so business was about to really pick up.


25 posted on 08/01/2024 6:47:38 PM PDT by CFW
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To: CFW

This have anything to do with Apple making their own microchips or is it all AI related?


26 posted on 08/01/2024 6:48:56 PM PDT by johniegrad
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To: CFW

Intel chips suck. The world has moved on fast, efficient, cool running RISC processors and intel is stuck in the past. But on the plus they are big on diversity, DEI and workeism


27 posted on 08/01/2024 6:51:10 PM PDT by libh8er
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To: libh8er

Moved on = moved on to


28 posted on 08/01/2024 6:52:30 PM PDT by libh8er
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To: CFW

the real reason Intel is in REALLY BIG trouble: their latest flagship CPU chips are mass self-destructing in the field, and Intel doesn’t have a complete fix, a complete cause, or even a complete understanding of WHICH chips are self-destructing:

https://www.theverge.com/2024/7/26/24206529/intel-13th-14th-gen-crashing-instability-cpu-voltage-q-a

https://www.reddit.com/r/intel/comments/1e9mf04/comment/lefz09c/

https://www.theverge.com/2024/7/22/24203959/intel-core-13th-14th-gen-cpu-crash-update-patch
[just like Boeing and the Secret Service, looks like Intel took their eyes off of their core corporate strengths and purpose and instead refocused on DEI as their top priority]


29 posted on 08/01/2024 6:56:27 PM PDT by catnipman ((A Vote For The Lesser Of Two Evils Still Counts As A Vote For Evil))
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To: SteveH

>>>amd and nvidia have been eating intel’s lunch.

Nuttin’ on Intel’s R&D blackboard? Just means poorly run company!


30 posted on 08/01/2024 6:58:27 PM PDT by existentially_kuffer
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To: CFW

We need a tariff on all electronics. Bring high tech back home where it all started.


31 posted on 08/01/2024 6:59:53 PM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: CFW

And our deep state congress piles a $1,000,000,000 more than that on our national debt each and every day. Businesses have to make choices, the feral gummit doesn’t.


32 posted on 08/01/2024 7:19:51 PM PDT by quantim (Victory is not relative, it is absolute. )
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To: cgbg

I’ll pass on the download...I CAN ONLY imagine.


33 posted on 08/01/2024 7:24:31 PM PDT by goodnesswins (DEI....Divide, Enslave, Indoctrinate.....OR ......Didn't Earn It)
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To: CFW
...furniture store that had been in existence since the 70s just closed...

I've noticed furniture stores going belly up are a sign of bad times to come. Combine this with the Feds holding back the money supply and you have the recipe for recession.

34 posted on 08/01/2024 7:25:04 PM PDT by Nateman (Democrats did not strive for fraud friendly voting merely to continue honest elections.)
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To: CFW

AMD for the win!


35 posted on 08/01/2024 7:25:57 PM PDT by ConservativeMind (Trump: Befuddling Democrats, Republicans, and the Media for the benefit of the US and all mankind.)
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To: CFW

In other news, China has hired 15,000 people to make computer chips to take over control of the chip market.


36 posted on 08/01/2024 7:27:48 PM PDT by oldbill
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To: catnipman

Last I worked on was 2764x.
Fab I grad, regular at the wagon wheel.
P 5 again.


37 posted on 08/01/2024 7:34:13 PM PDT by sasquatch (Do NOT forget Ashli Babbit! c/o piytar)
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To: Vigilanteman

Thankfully, the company I am at had a profitable Q1 and Q2.

God willing and the Creek don’t rise, it will continue.


38 posted on 08/01/2024 7:35:11 PM PDT by Lazamataz (If you are upset the bullet missed, contact me immediately. I'll make sure your bullet doesn't.)
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To: existentially_kuffer

Andy, Gordon and Bob are dead.


39 posted on 08/01/2024 7:37:57 PM PDT by sasquatch (Do NOT forget Ashli Babbit! c/o piytar)
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To: cgbg

It’s hard to work up any sympathy for woke companies.


40 posted on 08/01/2024 7:41:56 PM PDT by Schatze (It's better to keep your mouth shut and appear stupid than to open it and remove all doubt.)
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