Posted on 08/02/2024 3:30:40 AM PDT by Yossarian
(KRON) — Intel has announced plans to lay off 15 percent of its global workforce. On Thursday, the semiconductor chip manufacturing giant posted its second-quarter financial results for 2024, including a $10 billion cost reduction plan.
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Intel’s second-quarter revenue is down 1 percent year-over-year, and the company said it will be suspending dividends in the fourth quarter of 2024.
“Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones,” said Intel CEO Pat Gelsinger in a news release. “Second-half trends are more challenging than we previously expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiencies while accelerating our IDM 2.0 transformation.”
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While an exact timeline for the layoffs was not laid out, the company said it expects to complete the 15% reduction by the end of the year. The job cuts are set to impact about 18,720 workers.
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(Excerpt) Read more at kron4.com ...
Of course, who knows it the AI chip craze will collapse - is long-term demand really there?
I think the demand is there. If a company can produce a chip that eliminates 5 people, why wouldn’t companies buy that chip.
It’s good to know that, as of right now, AI is going to be as devastating as we feared.
- Will Intel finally get serious about opening up their fabs to other design firms?
- Will this impact Silicon Valley housing prices?
- Will Intel ask for even more H1-B visa immigrants this year?!?
IMHO, yes and no. Yes, AI is a thing and will be with us forever. In fact, some of what's loosely called "AI" has been with us for decades (i.e. what we used to call "hueristics", and "data analysis", etc.).
But I believe it's hyped up a bit much and the AI stock prices will come down to intrinsic values.
“Of course, who knows it the AI chip craze will collapse - is long-term demand really there?”
AI Chips will eventually be standard in every PC and server.
A more pertinent question seems to be....... has demand for AI chips really started yet?
Intel is just doing what all corporations must do from time to time, cleaning out the dead wood.
The downfall at Intel was when Obama picked one of his staff to run HR.
Managers were told “These are the only applicants you can hire”
Then they put the two clowns in as CEO.
“AI is going to be as devastating as we feared.”
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With “devastating” being the operative term here, since you can’t get around GIGO (”Garbage in, garbage out”).
Companies always lay off masses of employees here and there. The question would be how does this lay off compare to others in the past? Doubtful it is the economy but more of robots and AI.
My, how things have changed. I did some work in the early ‘70s using what was said to be Intel’s first microprocessor chip, the four bit 4004. It was a precursor to their eight bit 8008, used in the first Microsoft PCs. Intel ‘bragged’ at the time that the 4004 took a team of 6 dozen people nearly a year to develop.
Yeah...Intel is down 30% (stock) as I type this.
Ugly for sure....but it looks like they have been on a downward trend for the last five years.
Also...another stat...as I type this, their valuation is basically where it was in 2013.
They had been phoning it in for years and made half-a**** efforts to get into new markets. This is the result. It’s not just bad for them, it’s bad for the US.
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