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 ...
Intel was already using AI in 2021 to find defects in chips and what went wrong.
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.
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
The CHIPS act is dead. Long love the CHIPS act....
“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”
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.
This have anything to do with Apple making their own microchips or is it all AI related?
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
Moved on = moved on to
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]
>>>amd and nvidia have been eating intel’s lunch.
Nuttin’ on Intel’s R&D blackboard? Just means poorly run company!
We need a tariff on all electronics. Bring high tech back home where it all started.
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.
I’ll pass on the download...I CAN ONLY imagine.
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.
AMD for the win!
In other news, China has hired 15,000 people to make computer chips to take over control of the chip market.
Last I worked on was 2764x.
Fab I grad, regular at the wagon wheel.
P 5 again.
Thankfully, the company I am at had a profitable Q1 and Q2.
God willing and the Creek don’t rise, it will continue.
Andy, Gordon and Bob are dead.
It’s hard to work up any sympathy for woke companies.
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