News Intel Cuts Wages and Suspends Bonuses Following Catastrophic Quarter

[Admin]

Intel lowers its expenses by cutting employee compensation by 5% – 25%.

Intel Cuts Wages and Suspends Bonuses Following Catastrophic Quarter : Read more

 

[letmepicyou]

Hopefully this doesn't impact the new FAB being built in Ohio...

 

[cknobman]

Just shows you how much management and above is over paid.

 

[Fates_Demise]

Just shows you how much management and above is over paid.

Definitely not over paid considering people with the skills to run companies like that are a rarity.
I've seen first hand how bad management can drive a company right into the ground.

 

[-Fran-]

Definitely not over paid considering people with the skills to run companies like that are a rarity.
I've seen first hand how bad management can drive a company right into the ground.

You mean like Intel is doing right now?

Keep in mind Intel was considered, at some point, "too big to fail" and now there's some doubts being cast. They have "ran out of spare change" and have been cutting almost all things that are unnecessary. This is reminiscent to how you throw all things above board when trying to stay afloat and you'd only do that when you know you don't have any more headroom.

I've always considered all (yes, ALL) executive tier people are grossly overrated and overpaid for what they truly contribute in any corporation. Having "good ideas" is not exclusive to them and, if you work in one of the Fortune 100, you will understand why. Managers and Execs take written blame, but the ones ending up on the street are the engineers and other lower level workers that execute failed visions and/or pay the price of the "trust me bro" Exec mentality.

Keep in mind Pat came into Intel making* super big and bold statements, including calling out TSMC and some other "interesting" remarks that have come around to bite him hard. That's the sort of people that is overrated. Not saying Pat is a bad element or should be fired (yet?), but keep in mind that's text book "trust me bro" mentality.

Regards.

 

[Fates_Demise]

You mean like Intel is doing right now?

Keep in mind Intel was considered, at some point, "too big to fail" and now there's some doubts being cast. They have "ran out of spare change" and have been cutting almost all things that are unnecessary. This is reminiscent to how you throw all things above board when trying to stay afloat and you'd only do that when you know you don't have any more headroom.

I've always considered all (yes, ALL) executive tier people are grossly overrated and overpaid for what they truly contribute in any corporation. Having "good ideas" is not exclusive to them and, if you work in one of the Fortune 100, you will understand why. Managers and Execs take written blame, but the ones ending up on the street are the engineers and other lower level workers that execute failed visions and/or pay the price of the "trust me bro" Exec mentality.

Keep in mind Pat came into Intel making* super big and bold statements, including calling out TSMC and some other "interesting" remarks that have come around to bite him hard. That's the sort of people that is overrated. Not saying Pat is a bad element or should be fired (yet?), but keep in mind that's text book "trust me bro" mentality.

Regards.

Intel cutting programs is not indicative of them running out of money, far from it honestly. These programs they cut have run near zero or even negative profit for years.
Cutting wasteful costs is what a good business does. If there isn't some beneficial long term goal and it's not making money.. it shouldn't be running.
Intel still controls 70%+ of the sever market, among many other leading investments.

 

[Elusive Ruse]

Definitely not over paid considering people with the skills to run companies like that are a rarity.
I've seen first hand how bad management can drive a company right into the ground.

Some of it just pure hype, Tim Cook never warranted a $100 mill pay and it showed this year when he casually just decided to cut it in half.

 

[horsemama]

Intel cutting programs is not indicative of them running out of money, far from it honestly. These programs they cut have run near zero or even negative profit for years.
Cutting wasteful costs is what a good business does. If there isn't some beneficial long term goal and it's not making money.. it shouldn't be running.
Intel still controls 70%+ of the sever market, among many other leading investments.

It's possible Intel never expected those endeavors to make money. They're cutting them so they can report lower losses on their next financial report with the expectation they likely won't be generating that money by selling products.. That's the problem.

AMD and ARM are starting to take a bite out of that server market as well.

 

[Avro Arrow]

I have to say that I'm impressed that Intel actually put the blame squarely where it belongs, on the shoulders of the higher-ups.

Intel made some overly-bold claims and this was the end result.

When Pat (I believe it was Pat) said that:
"Our new products will keep AMD firmly in our rear-view mirror." he was just setting himself up to be ridiculed with hilarious memes like this:

 

[Avro Arrow]

Definitely not over paid considering people with the skills to run companies like that are a rarity.

I agree. The problem is the proliferation of people without those skills in those positions. Those people are defiintely over-paid. The fact that Intel has lost the gigantic lead that they had illegally made for themselves over AMD shows that the higher-ups at AMD did have those skills while the higher-ups at Intel did not. Therefore, yes, they were horribly over-paid.

I've seen first hand how bad management can drive a company right into the ground.

Yep, and Intel is a prime example. I may hate Jensen Huang because he's human garbage but I'll never be able to deny that he does know how to run a tech company. If you compare the executives at Intel with the executives at nVidia, I'm sure that it's night and day.

For every true genius like Craig Jelinek, there are hundreds of pretenders like Paul Otellini. For every true engineering genius like Jim Keller, there are hundreds of pretenders like Raj Koduri.

Being an executive isn't so much about what you know as who you know.

 

[tamalero]

You mean like Intel is doing right now?

Keep in mind Intel was considered, at some point, "too big to fail" and now there's some doubts being cast. They have "ran out of spare change" and have been cutting almost all things that are unnecessary. This is reminiscent to how you throw all things above board when trying to stay afloat and you'd only do that when you know you don't have any more headroom.

I've always considered all (yes, ALL) executive tier people are grossly overrated and overpaid for what they truly contribute in any corporation. Having "good ideas" is not exclusive to them and, if you work in one of the Fortune 100, you will understand why. Managers and Execs take written blame, but the ones ending up on the street are the engineers and other lower level workers that execute failed visions and/or pay the price of the "trust me bro" Exec mentality.

Keep in mind Pat came into Intel making* super big and bold statements, including calling out TSMC and some other "interesting" remarks that have come around to bite him hard. That's the sort of people that is overrated. Not saying Pat is a bad element or should be fired (yet?), but keep in mind that's text book "trust me bro" mentality.

Regards.

This!
Bottom workers always pay first the gambles of executives.
Infact, top executives rarely get a real effect on them as most of the top1000 corp have golden parachutes.

Hell, there are even executives whose solely function is destroy the company to sell their assets during a bankrupcy and they still get a huge payout.

 

[rtoaht]

I have to say that I'm impressed that Intel actually put the blame squarely where it belongs, on the shoulders of the higher-ups.

Intel made some overly-bold claims and this was the end result.

When Pat (I believe it was Pat) said that:
"Our new products will keep AMD firmly in our rear-view mirror." he was just setting himself up to be ridiculed with hilarious memes like this:

Pat's statement regarding client business vs AMD was correct though. Pat didn't claim leadership in server CPU vs AMD or in manufacturing vs TSMC. Look at AMD and Intel's client revenue and margin. AMD's client revenue and margin sharply fell in both Q3 and Q4 and they are still not guiding for a recovery. Intel is taking back share in client.

It is server where Intel is taking a beating for now until Sapphire rapids ramps. Sapphire rapids is competitive with Genoa despite having lower core count. It beats Genoa in AI and data transfer workloads while Genoa works well in thread heavy workloads with looser latency requirement. These two will fight head-to-head in the 2nd half of this year and the situation won't be as bad for Intel like it was for Ice Lake vs Milan. But Pat said the situation will change in 2025 when Intel won't just fight for leadership, they will actually take back "unquestioned leadership" in manufacturing with 18A and corresponding server product. That's a bold statement. People are fine to doubt that. But that doesn't mean his rearview mirror statement regarding client didn't turn out to be true.

 

[Deleted member 14196]

Definitely not over paid considering people with the skills to run companies like that are a rarity.
I've seen first hand how bad management can drive a company right into the ground.

You mean by running the business into the ground like Intel does? If they weren’t the 500 pound gorilla they would be out of business by now

 

[jp7189]

History shows that when you cut salaries, the best people will get jobs elsewhere, and the losers that can't go anywhere will stay.

It's harder to do a layoff, more expensive/time consuming, but at least the company has more control of who leaves.

As for performance bonuses, I would hope they are already holding back bonuses from underperformers...