Intel to cut 15% of headcount, reports quarterly guidance miss
cnbc.comSome of the financial punchline:
Revenue: $12.83 billion vs. $12.94 billion expected, $110M under expectation, and revenue declined 1% year over year in the fiscal second quarter.
Why is this a punchline?
Because their core business, the Client Computing Group that makes PC chips contributed $7.41 billion in revenue, up 9% and right around the $7.42 billion consensus, so that part is doing fine.
But the Intel’s Data Center and Artificial Intelligence unit posted $3.05 billion in revenue. The result was down 3% and lower than the $3.14 billion StreetAccount consensus, which accounts for pretty much all of the decline in expectation.
The shortfall almost entirely is in the Data Center and AI Unit.
Bellweather?
Intel had over 130,000 employees as of a couple of months ago.
15% layoffs is nearly 20,000 people.
Thats crazy! Meta got such huge press when they laid of 10k people.
For people who does not have the context, intel operates totally differently from big techs. Stack ranking is not a concept there, you can stay 30 years there without having to be worried about be marked as bottom x%. So for meta you can imagine there is 6% cut every year without layoff a single employee.
[dupe]
More discussion on official release: https://news.ycombinator.com/item?id=41133084
This is how you recover the lead, lay off people! Chasing that short term stock price goal really seems counter intuitive here.
On the flip side, trimming 15% of the fat may set them up for better growth in the future. No company has no fat, especially not this big
On the gripping hand, no company can trim 15% of their employees without cutting meat & bone too. They may have well over 15% fat but identifying it quickly is impossible.
Based on my experience working with Intel over the years, 30% of their employees do nothing at all and 30% work about 15 hours per week. So there is plenty of fat to trim.
oh goodie, what a wonderful job market, especially after already being unemployed for over a year
I don't usually give friends stock advice, but i text them to dump any intel if they have. Let see who listened.
Globally, or just in the US?
Appears globally.
> The chipmaker plans to cut 15% of headcount, which was over 125,000 at the end of the second quarter.
https://jobs.intel.com/en/locations ("Creating technology that will improve lives and transform the world is a global effort. Our 131,000 employees work in 65 countries, contributing their diverse perspectives and experiences to our innovative team. Explore our locations and find your perfect fit.")
Whew. That's a lot of jobs. Currently https://layoffs.fyi/ counts 380 tech companies w/ layoffs 109,297 employees laid off from 380 tech companies this year. Though I wonder what counts as a "tech job". For example, is the sales team included?
Stats say they ended 2023 at more than twice that, 282k.
Maybe their locations page is wrong? ¯\_(ツ)_/¯
IBM missed earnings by 1% so it cut 15% of workforce?
Are those the correct numbers?
No because this is Intel, not IBM.
IBM's problems are worse.
Please eloborate