Intel to Cut 10,000 Jobs Across the Globe, Projected to Save $10 Billion

[R0H1T]

80% of what? Pretty sure AMD's surpassed 20% of server shipments earlier this year, the x86 server marketshare itself is going down with the likes of ARM based Graviton, Nvidia's GH et al eating into that. Your numbers are about 2 years old.

Don't get me wrong, I am not taking sides, but it's like saying that Boeing has existed making planes and Airbus is the only player manufacturing passenger airplanes...

Boeing is propped up a lot by their "military" contracts!

AMD Hits Highest-Ever x86 CPU Market Share in Q1 2024 Across Desktop and Server

AMD has reached a significant milestone, capturing a record-high share of the X86 CPU market in the first quarter of 2024, according to the latest report from Mercury Research. This achievement marks a significant step forward for the chipmaker in its long battle against rival Intel's dominance...

www.techpowerup.com

 

[Daven]

I like show just as much as the next guy, but that ain't true. How has Intel became like Nokia? Still holding ~80 eightish percent or so from business market and about the same from consumer market....I mean that's one SLOOOW giant killing we have here. Don't get me wrong, I am not taking sides, but it's like saying that Boeing has existed making planes and Airbus is the only player manufacturing passenger airplanes...

Your market share numbers are for a very small part of the computing, internet connected industry which happens to have the lowest margins (laptops and desktops). People now use a diverse array of devices from smartphones to in-dash entertainment systems. Long gone are the days of desktops and laptops as the only internet connected devices.

Intel is also plummeting in the high margin server market. AMD has over 33% server CPU share up from 2% before Zen and Nvidia is dominating the GPU server market. And much to both AMD and Intel’s dismay, the ratio of server CPUs to server GPUs is widening in the GPUs favor.

Intel has no roadmap for success except for its fabs. This begs the question: will they pivot to being a fab only company like TSMC?

 

[Kn0xxPT]

I like show just as much as the next guy, but that ain't true. How has Intel became like Nokia? Still holding ~80 eightish percent or so from business market and about the same from consumer market....I mean that's one SLOOOW giant killing we have here. Don't get me wrong, I am not taking sides, but it's like saying that Boeing has existed making planes and Airbus is the only player manufacturing passenger airplanes...

Intel made OEM contracts that "forbids" AMD to supply their CPU's to OEM's for years .... its not that Intel has better product than AMD ... those contracts are soon to be over. AMD will have its market share.

 

[Chrispy_]

$10,000,000,000 divided by 10,000 jobs is $1,000,000 per job on average.

Willing to bet the median salary of those 10,000 jobs is about $75K, so they're either closing down some VERY expensive assets or they're firing several people who have 7-digit salaries.

 

[Kn0xxPT]

Intel has no roadmap for success except for its fabs. This begs the question: will they pivot to being a fab only company like TSMC?

Even with the EU and EUA investment on Fabs, i really doubt that Intel can reach half of TSMC's expertise and capacity or even Node capability ... in a short time-frame.

 

[64K]

That 10 billion dollars isn't just salaries. It's also benefits and the costs of maintaining office space and work space. Some of that space can be sold off or leased as well.

Having said that I think there's some creative accounting going on here in their 10 billion dollar figure. Two of my family members are CPAs that rose to upper management in their careers and they had a joke to tell about accounting. When asked what 2+2 equals they would reply, "what do you want it to equal?"

 

[stanleyipkiss]

Soooo Intel plans to fire HALF of AMD?!

Intel fires 10 000.

AMD has 26 000 employees in total.
Intel has 124 800 employees (before the layoffs)

 

[Daven]

Soooo Intel plans to fire HALF of AMD?!

Intel fires 10 000.

AMD has 26 000 employees in total.
Intel has 124 800 employees (before the layoffs)

Where do you think all those fired Intel employees are going?

 

[BoggledBeagle]

Watch out AMD, there can be spies among them!

 

[friocasa]

Remember when Intel was showing this to investors? It was just some years ago

 

[Darmok N Jalad]

That 10 billion dollars isn't just salaries. It's also benefits and the costs of maintaining office space and work space. Some of that space can be sold off or leased as well.

Having said that I think there's some creative accounting going on here in their 10 billion dollar figure. Two of my family members are CPAs that rose to upper management in their careers and they had a joke to tell about accounting. When asked what 2+2 equals they would reply, "what do you want it to equal?"

Yeah, not all that 10B is in employee salaries for sure. They're probably closing some departments with all associated overhead. A building they own would be an asset, but I imagine they lease a lot of space that's going to go. Still it's hard to imagine any company has 10k in unnecessary employees. I wouldn't think there'd be that much corporate fluff out there, but Intel has not really been on the ropes in a long time.

 

[mb194dc]

Intel didn't innovate much for about 10 years and they're still paying the price. Remember 14nm, quad cores...

AMD and others caught up and surpassed them.

Complacency... Rough on all the people being cut.

 

[Papusan]

10 000 jobs are being replaced by AI

And the quality will follow exactly same paths as what Microsoft offer for their CU patches every month update for Windows. Their QC team was replaced by AI as you know. Good luck with this move.

 

[Nater]

I don't mean to derail the thread, but it's election season, and the media is lying to you. The economy is SHIT right now. My shop has been sending people on unpaid leave since the beginning of summer. We have multiple CNC machines not running. It's not that we aren't getting the work - the work isn't there. If I asked to build a new workstation right now it'd be a "Let's wait and see."

Intel isn't the only company going through this. (Stellantis announced more this morning as well)

 

[nguyen]

And the quality will follow exactly same paths as what Microsoft offer for their CU patches every month update for Windows. Their QC team was replaced by AI as you know. Good luck with this move.

couldn't be worse than current Intel QC process

 

[Solaris17]

Greedy shareholders is not a new trend. No surprises here.

Yeah and really the whole industry does it. People just get loud in threads when it’s a company they really like or dislike. I’m sure the employees knew too, or saw the writing in the wall. Google, AWS, META, MS, Apple all the faang and all the big tech companies do rolling lay offs. There isn’t a year I don’t expect it at work. You just go get absorbed by someone else.

I read "save $10billion" from Intel, and think of the starting figure for a settlement on eventual 13th-14th gen class-action.

They aren’t even the same fund. There are whole accounts for litigation.

Yeah, not all that 10B is in employee salaries for sure. They're probably closing some departments with all associated overhead. A building they own would be an asset, but I imagine they lease a lot of space that's going to go. Still it's hard to imagine any company has 10k in unnecessary employees. I wouldn't think there'd be that much corporate fluff out there, but Intel has not really been on the ropes in a long time.

I was asked to get pizzas once at AWS. From the place down the street. Me and 4 other engineers walked down the street only to be told the order never came in. So we ordered and waited. Like 40min then walked all the way back. There was just about 1mil in employees getting pizza, they easily bought pizza several times over just having us wait in the lobby.

These companies have tremendous amounts of fluff. Depending on division it’s even worse. 3 layers of middle management kind of shit.

 

[mb194dc]

I don't mean to derail the thread, but it's election season, and the media is lying to you. The economy is SHIT right now. My shop has been sending people on unpaid leave since the beginning of summer. We have multiple CNC machines not running. It's not that we aren't getting the work - the work isn't there. If I asked to build a new workstation right now it'd be a "Let's wait and see."

Intel isn't the only company going through this. (Stellantis announced more this morning as well)

But the BEA, BLS, CB etc are telling us everything is rosy, solid Q2 GDP, Establishment payrolls rise every month and with an election in November, who wouldn't believe them?

More on topic, outside of the "AI" mania boom, I don't think a lot of tech companies are doing very well either, including of course Intel. By the time Intel could even get a product out for "AI", the demand probably will have gone anyway. Boat missed.

 

[phanbuey]

Intel is going under, as evidenced by buggy 13Gen and 14Gen CPUs... Welcome ARM!

Who is going to make ur arm designs?

 

[Daven]

I don't mean to derail the thread, but it's election season, and the media is lying to you. The economy is SHIT right now. My shop has been sending people on unpaid leave since the beginning of summer. We have multiple CNC machines not running. It's not that we aren't getting the work - the work isn't there. If I asked to build a new workstation right now it'd be a "Let's wait and see."

Intel isn't the only company going through this. (Stellantis announced more this morning as well)

These layoffs have nothing to do with the general state of the economy or AMD, Nvidia and all others across the board would be going through layoffs as well. Remember, if it's happening to just one entity, it's that entity. If it's happening to all entities, then it's something else.

 

[Chrispy_]

That 10 billion dollars isn't just salaries. It's also benefits and the costs of maintaining office space and work space. Some of that space can be sold off or leased as well.

Having said that I think there's some creative accounting going on here in their 10 billion dollar figure. Two of my family members are CPAs that rose to upper management in their careers and they had a joke to tell about accounting. When asked what 2+2 equals they would reply, "what do you want it to equal?"

They're talking about saving 10 bil by 2025, so in the next 5 months only.
I doubt space rental or maintenance covers even 1% of that figure, but maybe if they're selling off property and expensive ASML photolithography assets they own outright and have a buyer lined up?

 

[cosminmcm]

Based!

 

[john_]

10000 employees are in Pat's 'Rear View Mirror'

 

[Deleted member 229121]

While I don't like to hear about layoffs, I am glad at least that AMD has given Intel a resounding boot to the ass.
They are going to have to get their crap together and come back with something good, and when they do we all win.

 

[sethmatrix7]

>that will be 16.86 million dollars plus tip

 

[AnarchoPrimitiv]

I LITERALLY predicted this months ago when the CHIPs act was announed...I predicted that a few months after Intel gets the money, they'll throw out a sizeable portion of the workforce.....it also happened with other companies after the 2008 bailout.

If the government was something more than a charity program for corporations, they might have made some contingencies on that money, i.e. no layoffs for the next three years....but I guess putting rules on that financial support (like literally every citizen on government assistance) for a corporation would be "anti-free market communist radicalism [insert other vaguely Marxist terminology that the accuser can never define]"