Intel is laying off over 15,000 employees and will stop ‘non-essential work’
Intel is laying off over 15,000 employees and will stop ‘non-essential work’
That’s a lot of layoffs.
So they got all that money from Uncle Sam's CHIPS Act only to lay off 10,000 employees and make themselves "lean". Govt funded unemployment.
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While Intel has absolutely been losing money on its chipmaking Foundry business as it invests in new factories and extreme ultraviolet (EUV) lithography, to the tune of $7 billion in operating losses in 2023 and another $2.8 billion this quarter, the company’s products themselves aren’t unprofitable.
So what I'm getting here is that the CEO and or the board decided to invest in something that is losing a ton of money and so now 15% or more of the people who have been working diligently to actually make the company money are going to pay for it by losing their job.
So what I’m getting here is that the CEO and or the board decided to invest in something that is losing a ton of money
Intel has an enormous technical debt that they're finally struggling to pay back after they hit a brick wall with their 7nm Titanium chipset.
It isn't that this is wasteful spending so much as it is big upfront costs for future productive development.
That said, the fact that this work has to be government subsidized in order to be done raises the question of why this business is private at all.
I think it's even more absurd than that. The CEO/board decided to make a long-term investment which wasn't going to pay off for several years. To what should be the surprise of no one, that meant short term losses.
Framing an investment in a massive amount of new infrastructure as a loss because it didn't immediately start operating in the black is beyond unreasonable, but that's the demand when all that matters is quarterly gains and year-over-year growth.
That's definitely a huge issue but they're going to have a hell of a time on the overcooked processors on the market right now. They've sold a hell of a lot of defective product over the past couple of years. Consumers and third parties are going to come after them for refunds. Consumer confidence is way down. They're going to have a hell of a time trying to sell 15th gen to people. Everyone I know who knows what in the hell is going on is going to AMD.
Consumer confidence is way down. They're going to have a hell of a time trying to sell 15th gen to people. Everyone I know who knows what in the hell is going on is going to AMD.
I've been in the industry since back when AMD actually was making the processors for Intel. And people have been saying this exact thing every time there's a fluctuation in the processor market. Yet Intel still basically owns the market anyway.
The failure in Intel isn't their processors, it's their management.
I mean you can't blame the rocks, of course it's the management :)
That's exactly what happened, and that's how layoffs always work.
The losses of the horrible decisions of the board/owners/management/etc are paid for by the blood of the workers. It's so wonderful and very fair.