News Intel to layoff more than 15% of workforce — almost 20,000 employees — encountered Meteor Lake yield issues, suspends dividend

[Admin]

Intel announced plans to lay off more than 15% of its workforce amid troubling results.

Intel to layoff more than 15% of workforce — almost 20,000 employees — encountered Meteor Lake yield issues, suspends dividend : Read more

 

[FreeBee101]

AMD/Intel The future of AI!

 

[umeng2002_2]

I'm always shocked how executives think firing thousands of employees magically makes a company able to make better products.

 

[ThomasKinsley]

It's going to take some time to turn the ship around . . . assuming it can be turned without running it aground.

 

[SkyBill40]

One word immediately comes to mind: Yikes.

 

[elforeign]

"These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career. My pledge to you is that we will prioritize a culture of honesty, transparency and respect in the weeks and months to come," Gelsinger said in his blog post.

Such mindless drivel, these people do not care one iota about the meaning of the words honesty, respect, or transparency. Like many large companies they are morally bankrupt and only beholden to the shareholders and how they feel about the bottom line. Their whole corporate ethos has been bottom of the barrel, monopolistic, rife with illegality, anti-competitive behavior.

 

[-Fran-]

Welp... This here: "...reducing non-GAAP R&D and..." is all the "doom & gloom" you need to lose hope in a Company that, supposedly, needs to innovate constantly to stay relevant.

There's still time for Pat to correct that mistake, so I hope he manages to convince the board that R&D should not go down, unless they want to strip Intel down and sell it for parts now.

Well, as always, the R&D budget is not all CPU or the "bread and butter" elements, but it still feels (at least) like a terrible idea with no deeper context.

I'm sorry for the engineers which may be affected... Not so much for marketing

Regards.

 

[greymaterial]

firing R&D engineers might be the last straw to the crisis, im hoping to hear more "intels" about the RPL(r) cross-generational disaster from them.

 

[thestryker]

I'm always shocked how executives think firing thousands of employees magically makes a company able to make better products.

For publicly traded companies these moves are always about appeasing shareholders as you can see it happen even when companies are having successful quarters etc.

 

[thestryker]

Analyst Patrick Moorhead said that Gelsinger told him about the Meteor Lake yield issues, as you can read if you expand the tweet below.

...

The company had previously cited a shortage of packaging capacity for its inability to meet OEM demand for the Meteor Lake processors, but Moorhead says Gelsinger told him that yield issues fueled the need for 'hot lots,' which are accelerated wafer runs of chips that incur excessive cost relative to normally-scheduled operations.

I don't really think this should surprise anyone who's been following the progress of MTL and Intel 4. The Intel 4 process has only been used for MTL in mass production and I believe the next largest volume was the chip they did for Ericsson and that is physically small which should limit yield issues to some degree. Then of course there was the cancelation of MTL desktop which came late relatively speaking.

 

[CelicaGT]

Crappy news, especially for those about to lose their jobs. Hopefully they are able to find work quickly. As for Intel, they need to cut as much fat as possible, focus on their core business and come back lean and mean. I'm big into AMD like many enthusiasts right now, but a strong Intel and a strong AMD are the best for everyones interests.

 

[CmdrShepard]

I'm always shocked how executives think firing thousands of employees magically makes a company able to make better products.

I always have that image of Zorg in my head when I see these firing announcements.

"Fire one million"
"But Sir, 500,000..."

It's been proven time and time again that they don't think about anything else than the short term, bottom line, and their own bonuses.

It's going to take some time to turn the ship around . . . assuming it can be turned without running it aground.

When you reach the depths of Mariana Trench there's no turning the ship around.

This certainly won't save them enough money for the incoming lawsuits anyway.

 

[watzupken]

I truly hope that Intel can turn this around. I think with each misstep, they are sinking further as people’s trust in the brand erodes.

 

[ekio]

How much was the CEO PatPat paid per year in total, I recall more than 150 millions with the shares bonus ?

This money for one person only, is enough to pay 1000 people 150k per year... talk about greed!

Intel for years, betrayed the world, selling them never improving CPUs completely overpriced.
They thought they would be forever leading, maybe seeing AMD fall and ending up in a total monopoly, able to f us even deeper forever. They even refused investing in the iPhone because they were too important for a phone project from Apple.
Look at them now, AMD crushes them with their CPUs, 0 percent of smartphones use x86 chips, Apple ditched them going full ARM. They tried to get their hands onto SiFive to control the best ARM contestant doing RISC-V, but they declined (and that was the only thing to do).
They saw their collapse, if they were only doing CPUS, so they diversified and went down the GPU route, because there are many customers ready to spend big money for a powerful gaming rig or mining at the time they started (like if they care what the card are used for in the end..), but they are not even half close to achieving a true contestant to GeForce and even Radeons. They probably try to make AI chips as fast as they can now, but beating Ngreedia products and ecosystem will be very hard.
And today, even with huge gov money help, they can't strive. Their processors have huge technical issues.
They are a failure.

Conclusion: NEVER think you are too big to fail, too cool to make efforts for your partners, too unique to bother investing for your customers while maintaining decent prices, or you will go the Intel way.

 

[Kondamin]

Depending on what departments they are cutting that doesn’t have to be a bad thing.
I mean the person that came up with core ultra and the other naming schemes needs to be tossed in a volcano

 

[watzupken]

I feel Intel did what is right to focus on GPU. Clearly AMD and the likes of ARM are benefiting from having both as a package. Especially when demand for desktop PCs are declining and laptops/ tablets taking over. And to be fair, Gelsinger took over a sinking ship that he was tasked to fix. He may be around for many years, but the missteps from prior poor management decisions is starting to take their toll on the company.

 

[Notton]

Intel forced to do more layoffs is funny.

They just did a layoff back in March/April when it was fashionable to do layoffs for no particular reason.

 

[A Stoner]

That is a pretty big chunk of the company. I like having competition out there, so hopefully intel and AMD can continue to be near peer competitors driving strong innovation.

 

[JRStern]

>Meteor Lake yield problems

Gelsinger has been sitting on (not disclosing to stockholders) yield problems since he arrived. It is hard to believe they have a solid hold on their touted 18a ... or much of anything at this point.

IMHO

SMH

 

[vijosef]

I'm always shocked how executives think firing thousands of employees magically makes a company able to make better products.

If you voluntarily pay 1000$ for a phone, it means that the phone is worth more than 1000$, or you would not buy it (you would keep the money, since it is more valuable to you).

That means that the phone is worth 1000$ or more, regardless of the cost of production.

If 2 manufacturers can spend 100$ making the phone, it means that, to society, the phone costs 100$ in resources, but produce 1000$ in value, so society gets richer by 900$

But if one manufacturer can produce the same phone by halving his costs, now the phone costs 50$ in resources to society, so the phone now enriches society by 950$, but society also gets richer by 50$ in freed resources, which can now be redirected to produce something else, like monitors.

So next year, you can buy a phone but also a monitor, and you got richer. That's how economic growth works.

 

[rm12]

First off, all these issues materialised during the past quarter? None of those existed the quarter before? So, now throwing all together and taking a hit in the hope next quarter is better?

On Yahoo Finance an analyst is saying that Intel is still a few years behind TMSC and revenue can only start to show from maybe 2028. TMSC is earning a living atm fabbing silicon for other parties. TMSC will keep investing big time in their fabs, if Intel cuts back now, they will fall (further) behind.

 

[8086]

Trim back on marketing and unnecessary expenditures, ye please' but cutting R&D is now the way forward. How about cutting the CEO's salary until Intel becomes a profitable leader in technology once again!

Considering how Intel just received billions from the CHIPS Act, I cannot understand why they are in such dire straits. My inner personal conspiracy theory is that their CEOs could be trying to aide China by hurting intel's future as a company. I mean, the Chinese have been known to bribe people in power of strategic US interests for their own gains.

 

[Bikki]

I'm always shocked how executives think firing thousands of employees magically makes a company able to make better products.

Firing does make sense when you think of it as a way to reduce inefficiency from the people that cause worse product.

 

[beyondlogic]

I'm always shocked how executives think firing thousands of employees magically makes a company able to make better products.

that's because intels chair wouldn't know a good product if it bit them all on the rear. a good chunk are equity firm or medical related.

 

[bit_user]

For publicly traded companies these moves are always about appeasing shareholders as you can see it happen even when companies are having successful quarters etc.

He suspended the dividend, though. That's definitely not appeasing shareholders. In fact, it could help lead to his downfall.

It's probably the right move, IMO. I didn't expect it - I guess I underestimated him. Ballsy.