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 ...
Yep, and with NPU’s being built into the client machines, AI is now down to the laptop/desktop level.
Think chatgpt without being online. Heck, they are even in smartphones now.
I have been in the industry for 30 years...The negative consequence of AI scares the crap out of me and it’s moving fast. The performance and power of the SuperPOD with the GB200 is amazing. They are just getting started.
Wow. Didn’t know they were that bad off. Reducing R&D is a REALLY bad idea in the space they operate in.
Yeah. they are cheap. useless, but cheap.
There isn’t going to be any real benefit from AI and no one is going to make any money off of it anytime soon.
Many, many moons ago I worked on computers from Hewlet-Packard that IIRC first started implementing RISC-V CPUs. They ran MPE-IX and HP-UX. They were sweet. That was back when HP was still a real technology company run primarily by actual engineers.
Loved working with MPE-V and MPE-IX. The HP-3000 line was solid as heck.
That was PA-RISC, not RISC-V (the latter is much later and came from UCB not HP).
Yes oil down big today as well. All due to the job numbers which imply a recession in the US. Along with that all week we have seen weak numbers from China.
Like their white counterparts, they're giving "you" what you want, cheap labor.
OMG...HP-UX. I came from a Novell then Windows NT background back in the day. Took a job at a company that ran HP-UX. Mad respect for the HP-UX admins as they had tons of experience with the OS but still referenced manuals every time they did anything of consequence.
They gave me admin rights and I said heck no I don’t want it!! Windows asks “are you sure”...Unix implies you know what you are doing. :)
Over the last week:
1. Japan’s stock market posted its largest daily drop since 2020
2. US unemployment rate rises to 4.3%, highest in 3 years
3. Starbucks, $SBUX, reports a 6% decline in store traffic
4. Intel, $INTC, erases one third of its value in 1 day
5. Amazon, $AMZN, falls on lower than expected revenue
6. 10-year note yield falls 40+ basis points in 1 week
7. The ISM Manufacturing Index fell to 46.8, its lowest level since August 2023
How is this a “soft landing?”
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