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[winjer]

Word is that Intel will Reduce Workforce by 10,000 Jobs, Saving $10 Billion by 2025

Intel is reportedly planning to cut its workforce by 10,000 employees, sources told Bloomberg. This move is seen as a response to increasing pressure from shareholders and a strategy to cope with recent declines in the company's market performance.

www.guru3d.com

Intel is reportedly planning to cut its workforce by 10,000 employees, sources told Bloomberg. This move is seen as a response to increasing pressure from shareholders and a strategy to cope with recent declines in the company's market performance. Over the past few years, competitors like AMD and NVIDIA have made significant inroads into Intel’s market share. Currently, Intel has about 110,000 employees worldwide, and this reduction would decrease that number to around 100,000, not counting employees from previously spun-out units like the Altera FPGA company. The company expects these job cuts to lead to savings of about $10 billion by 2025. It’s possible that Intel could announce these reductions as early as this week, though the exact details are still under wraps, according to insiders. Intel is also on schedule to release its second-quarter financial results soon.

In 2022, the company announced reduced spending in non-critical areas and reducing the workforce, and in 2023, cut the workforce by 5% to 124,800 employees last year, only to be left with 110,000 employees in 2024.

Intel to Cut Thousands of Jobs to Reduce Costs, Fund Turnaround

Intel Corp. plans to eliminate thousands of jobs to reduce costs and fund an ambitious effort to rebound from an earnings slump and market share losses.

www.bloomberg.com

Again, workers getting sacrificed at the altar of the shareholder profits.

 

[kazuyamishima]

Damn, 11k people just like that, nutz!!

 

[tusharngf]

they got tax break recently i remember for building TSMC level fab

 

[The Cockatrice]

Wow Intel digging their graves completely. Whats going on with hardware companies lately, dafuq?

 

[winjer]

Wow Intel digging their graves completely. Whats going on with hardware companies lately, dafuq?

Hardware and software companies are relying on AI replace humans.
We are becoming obsolete.

 

[ShakenG]

Imagine if it was 10.500
Seriously though, intel kinda fallen off lately.

 

[Ozzie666]

Share holders ruining everything for the common folk.
10,000 jobs and familys so they can make a bit more ROI.

 

[Skyfox]

So can they afford a CPU recall now?

 

[nowhat]

So can they afford a CPU recall now?

They could afford it, but they don't have the personnel to handle all the support tickets.

 

[Silver Wattle]

Not surprised, they are spending significantly and the revenue is not good.
I hope the new fabs can turn things around.

 

[Mokus]

So can they afford a CPU recall now?

For that they will have to fire some CEOs and other useless farts without bonuses. But that would be a sacrilege for the corporate America.

 

[StereoVsn]

Again, workers getting sacrificed at the altar of the shareholder profits.

Fucking Wallstreet and “for the shareholders”. Who cares about long term company viability when they can pump up stock price for a quarter or two.

And yeah, I am sure cutting engineering and manufacturing employees will work out great in the long term.

 

[The_Observer]

How corporate world works is disgusting. Is there really no better alternative than how this works currently? I mean, couldn’t these companies function without shareholders? I guess that would mean they would not be able to grow that fast or something.

 

[Myths]

11K, imagine if even half of those positions are actually SWE/DS/DA.

Hardware and software companies are relying on AI replace humans.
We are becoming obsolete.

Not really because then people can also leverage AI to essentially create their own virtual team/staff/employees. It’s a double edged sword for corporations once people become more informed and competent at using AI to build their own companies and products.

 

[winjer]

Fucking Wallstreet and “for the shareholders”. Who cares about long term company viability when they can pump up stock price for a quarter or two.

And yeah, I am sure cutting engineering and manufacturing employees will work out great in the long term.

Remember when Intel was the world leader in CPUs and process nodes. And when it was developing Larrabee.
Then came Brian Krzanich, who cut R&D to a single digit number. And cancelled Larrabee, fired the dev team, forcing the team to go to Nvidia and create the tensor core and the AI boom.
This was all done in the name of increased profits for shareholders. And it worked, for a decade, Intel's ROI were massive for shareholders.
But then, Intel got surpassed by TSMC, AMD, ARM, Apple, Qualcomm, etc. And they lost the AI boom, to Nvidia.
Gelsinger is falling into the same mistake of putting shareholders first and the future of the company second.

 

[StueyDuck]

This is a part of that "economy has never been better" that's been all the rage lately?

 

[winjer]

Not really because then people can also leverage AI to essentially create their own virtual team/staff/employees. It’s a double edged sword for corporations once people become more informed and competent at using AI to build their own companies and products.

Training an AI costs billions in hardware and energy.
It's not something in the reach of the normal person.

 

[Hudo]

Man, what the fuck is happening at Intel?

 

[demigod]

10,000 workers that were involved in 13th and 14th gen CPUs.

 

[Perrott]

Why the hell does Intel have over 100k employees? They should layoff at least 3/4s of their entire workforce.

 

[Evil Calvin]

131,000 employees.........what the hell do they do outside of making processors that justify 131,000 employees?

 

[StereoVsn]

Remember when Intel was the world leader in CPUs and process nodes. And when it was developing Larrabee.
Then came Brian Krzanich, who cut R&D to a single digit number. And cancelled Larrabee, fired the dev team, forcing the team to go to Nvidia and create the tensor core and the AI boom.
This was all done in the name of increased profits for shareholders. And it worked, for a decade, Intel's ROI were massive for shareholders.
But then, Intel got surpassed by TSMC, AMD, ARM, Apple, Qualcomm, etc. And they lost the AI boom, to Nvidia.
Gelsinger is falling into the same mistake of putting shareholders first and the future of the company second.

Yep, Intel - The Boeing of Chipmaking.

Edit: The question of why Intel has that many employees basically shows a lack of even a modicum of understanding what a company like Intel does.

 

[ricardo_sousa11]

Is it DEI hires?

I bet its DEI hires.

 

[Magic Carpet]

The only Intel news I want to hear is brand new chips rolling off brand new FABS.
Where my tax money going Intel?

 

[ChuckeRearmed]

I wonder how many of them contributed to Intel CPU's being a mess.

 

[RoboFu]

Hardware and software companies are relying on AI replace humans.
We are becoming obsolete.

Worse than that.. investors are riding the AI hype train at the moment and demand it even if it's not feasible or practical.

 

[NoLootBoxDev]

For the Stakeholders

 

[MikeM]

I sometimes wonder if humanity would be better off without a stock market.

 

[DavidGzz]

Uncle Phil mismanaging again. Wait, wrong company, I'll put my Neogaf branded pitchfork away.

 

[SportsFan581]

Yikes for the workers. With the way their financials have been looking, I can't say I'm surprised.

 

[ChorizoPicozo]

Are these actions appropriate for a very healthy company?

 

[Myths]

Training an AI costs billions in hardware and energy.
It's not something in the reach of the normal person.

There’s plenty of AI software and services for free (in addition to credit/generation subscription models ), so it largely depends on what we’re talking about. As it relates to the Games industry, there's plenty of resources and communities making trained models/LoRA/VAEs available with no cost.

 

[BlackTron]

Remember when Intel was the world leader in CPUs and process nodes. And when it was developing Larrabee.
Then came Brian Krzanich, who cut R&D to a single digit number. And cancelled Larrabee, fired the dev team, forcing the team to go to Nvidia and create the tensor core and the AI boom.
This was all done in the name of increased profits for shareholders. And it worked, for a decade, Intel's ROI were massive for shareholders.
But then, Intel got surpassed by TSMC, AMD, ARM, Apple, Qualcomm, etc. And they lost the AI boom, to Nvidia.
Gelsinger is falling into the same mistake of putting shareholders first and the future of the company second.

If shareholders drive a company then it's on them to demand long-term viability from the CEO, not this incessant appeasement.

Not absolving the CEO of course, but shareholders need to take responsibility for their investments as well instead of focusing squarely on the short-term profits.

We all want big money fast and now but big, consistent money isn't had with shortsightedness.

 

[winjer]

There’s plenty of AI software and services for free (in addition to credit/generation subscription models ), so it largely depends on what we’re talking about. As it relates to the Games industry, there's plenty of resources and communities making trained models/LoRA/VAEs available with no cost.

One thing is running an AI model, another is to train an AI.

 

[Sanepar]

Instead to create better CPU with improvements > 5% per year they prefer to layoff 10k people.

 

[M1chl]

Not beating "Boeing of CPUs" allegation again

 

[Hudo]

Not beating "Boeing of CPUs" allegation again

Boeing is the Intel of aircraft manufacturing

 

[Deerock71]

Whoa. Now THAT'S a cut!

 

[proandrad]

So can they afford a CPU recall now?

“My 14900k works just fine.”

 

[Elog]

This is the same path as Boeing. Build a great engineering company. Feel so comfortable in your engineering superiority that you start to chase margin and make your sales and marketing people your most important employees. Loose technology leadership. Start to chase margins even more and ask engineers to cut corners to get results faster. Product platform under delivers even more. Blame engineers and start to cut costs to improve margins/profitability. Death spiral is now in full swing.

 

[ResilientBanana]

when you have over 131k of employees, a cut like this is simply trimming the fat. 121K seems fine. I'm sure everyone will land on their feet considering that they work for Intel. Now they can go work for nVidia, AMD, Qualcomm, or anyone else in the tech industry..

 

[rm082e]

Didn't they recently announce they're going to have a big RMA program for all the 13th/14th gen CPUs that have failed? I imagine that's going to be real expensive. If they have to lay these people off to balance the books, "dem's da breaks".

EDIT: Has there been any updates on the rumored cancelation of Battlemage or Celestial?

 

[Rentahamster]

This is a part of that "economy has never been better" that's been all the rage lately?

It has never been better.

For rich people.

 

[Spyxos]

Shitty that it happened, but why have they so many people in first place?

 

[Solarstrike]

 

[jakinov]

Thread title is misleading. The original Bloomberg article reports they want to layoff staff to basically invest elsewhere (specifically R&D) in "fixing" the company. It also notes that Intel is losing market share to AMD, it doesn't really do much as Nvidia in the semiconductor space pertaining to AI and that growth is slow/flat.

From original source

Intel Corp. plans to eliminate thousands of jobs to reduce costs and fund an ambitious effort to rebound from an earnings slump and market share losses.

The workforce reduction may be announced as early as this week, according to people familiar with the company’s plans, who asked not to be identified because the information isn’t public. Intel, which is scheduled to report second-quarter earnings Thursday, has about 110,000 employees, excluding workers at units that are being spun out.

Chief Executive Officer Pat Gelsinger is spending heavily on research and development aimed at improving Intel’s technology and helping it return to prominence in the semiconductor industry. The company’s once-dominant position eroded under Gelsinger’s predecessors as rivals, such as Advanced Micro Devices Inc., have caught up and taken market share. An Intel spokesperson declined to comment.

Ultimately, at the end of the day the goal is to appease shareholders but thread title framing it as they are just killing jobs so they have extra money of the pockets of shareholders when it's about saving money to focus on things that will make the company grow in value and in turn bring shareholder value.

Also, many people working at Intel are shareholders. Most people in big tech with impactful jobs are given shares as part of their compensation package, even new grads. Employees can get really mad and even leave companies when stocks do poorly because you could be working at a company that's actually focused on growth so your stock grants are actually worth more when you get them instead of less. So making sure your stock is valuable and grows can be important for retaining talent and keeping the machine going. Why would you want to work for intel when the 20K in stock they promised you is worth 15K when you can go to AMD and the 20K in stock becomes worth 25k when you get your hands on it.

 

[cinnamonandgravy]

hope will.i.am is still intel's "director of creative innovation"
priorities, you know

 

[amigastar]

hope will.i.am is still intel's "director of creative innovation"
priorities, you know

UUgh, Beats...

 

[{insert code here}]

I mean, that's what happens when you get lapped by the competition. Job's are not a privilege, if your performance is lagging you fitting to get cut. It ain't brain surgery.

 

[winjer]

I mean, that's what happens when you get lapped by the competition. Job's are not a privilege, if your performance is lagging you fitting to get cut. It ain't brain surgery.

Funny how that rarely apply to the CEO, CFO and board of directors.