Current Events > Intel firing over 15k employees

(+) Yeah! (+)

https://www.nytimes.com/2024/08/01/technology/intel-layoffs-quarterly-report.html
Shit should be illegal.

They are in deep shit currently.

Gaming industry: lays off approx 11k employees over the last two years.

Intel: Hold my beer

Should legally required to massively cut CEO pay/benifits and to halt all stock buybacks for a long time when doing major layoffs.

yea, it's like companies give literally all the money to shareholders and then the second there is a problem people have to get fired.

we should make large firms pay out to some kind of job insurance fund for workers so that they can't just do this.

like if a company sells all the office chairs theyll make a quick buck and turn a quarterly "profit" but we just got rid of all the chairs so now we can't do anything easily. the people who decided to sell the chairs sold their stock and cashed out when the profit from the chairs was high, and now everyone else at the company is fucked.

literally should be fraud.

Five bucks says that the CEO gets a pay increase

Late stage capitalism is like late stage cancer. It's a disease that eats away at itself.

More youtubers to make vids about being laid off and unable to find work!!

But will tech ever unionize??????

intel ceo made almost 17 million last year

Robot2600 posted...

yea, it's like companies give literally all the money to shareholders and then the second there is a problem people have to get fired.

we should make large firms pay out to some kind of job insurance fund for workers so that they can't just do this.

like if a company sells all the office chairs theyll make a quick buck and turn a quarterly "profit" but we just got rid of all the chairs so now we can't do anything easily. the people who decided to sell the chairs sold their stock and cashed out when the profit from the chairs was high, and now everyone else at the company is fucked.

literally should be fraud.

Unions actually solve this but would be even cooler if the law just said you can't anyways.

Even so union
Unions work

I can't see the article, does it say how much they paid executives?

the only thing I read before the ad popup was the article title saying that they actually lost money in the last quarter

Unsuprised_Pika posted...

Should legally required to massively cut CEO pay/benifits and to halt all stock buybacks for a long time when doing major layoffs.

They had to suspend their dividend this quarter and the stock price has been flat since 2000, it's not like Intel shareholders have been doing particularly well.

thronedfire2 posted...

does it say how much they paid executives?

No. Why would it? It would make the execs look bad if they said, and here in America the CEOs are our gods.

Intel is in bad shape until at least Panther Lake next year.

I haven't been following the news. Is this because of their newer CPUs that literally just die, can't be fixed, and Intel refusing to reimburse customers in any way?

Biden's economy.

Besides manufacturing issues, Intel ran into product problems. Demand for personal computers that use its chips slumped last year. At the same time, customers have turned to rival Nvidia for A.I. chips for data centers, even as Intel has responded to the A.I. boom by adding features to its standard chips and offering a special-purpose chip line called Gaudi. Advanced Micro Devices, another rival, has also grabbed market share in standard data center chips and new products tailored for A.I.

Intel said on Thursday that revenue in its data center business fell 3 percent in the second quarter. In contrast, AMD on Tuesday reported a 115 percent jump for its data center business.
Overall, Intel swung to a loss of $1.6 billion in the second quarter, while revenue fell 1 percent to $12.8 billion. Its gross profit margin, a closely watched metric that once averaged around 65 percent, was 35.4 percent in the quarter.
In his letter to employees, Mr. Gelsinger said that revenue had not grown as expected, and that the company had yet to fully benefit from major trends like A.I. Intel posted about $24 billion less revenue last year than it did in 2020, yet its work force is 10 percent larger, he wrote.
There are a lot of reasons for this, but its not a sustainable path forward, he wrote.
Beyond the costs, Mr. Gelsinger said Intel was still too bureaucratic and inefficient, despite past attempts to streamline operations. As part of the restructuring, he said, the company will trim the number of products it sells, stop nonessential work and reduce capital spending more than 24 percent. Many of the job cuts will be accomplished through early retirement and voluntary departure programs, he added.
The job cuts have challenged me to my core, and this is the hardest thing Ive done in my career, Mr. Gelsinger wrote. He pledged that Intel would prioritize a culture of honesty, transparency and respect in the weeks and months to come.

For the current quarter, Intel projected a gross profit margin of 34.5 percent and revenue of $12.5 billion to $13.5 billion, below analyst estimates of $14.3 billion.
Mr. Gelsinger and David Zinsner, Intels chief financial officer, said on a conference call that one reason for the disappointing projection was the PC market. Computer makers have built up excess chip inventories as demand for such systems has slowed, particularly in China.
At the same time, Intel has bet that a new generation of A.I. PCs will drive more demand. The microprocessors it developed for such machines are composed of multiple chips, a large portion of which are manufactured by external foundries and cost Intel more than those produced in its own factories, Mr. Zinsner said. As Intel starts making such components internally, profit margins will improve, he added.
Mr. Gelsinger predicted that the investments in such components would pay off as A.I. PCs grew to more than half the PC market by 2026.

Rip intel

BewmHedshot posted...

They had to suspend their dividend this quarter and the stock price has been flat since 2000, it's not like Intel shareholders have been doing particularly well.

ok if they suspended dividends they really are having issues

Intel is struggling to make stable CPUs when they're still trying to milk aging architectures.

Laptop chips are fine but desktop, including workstation is a wasteland now.

Pepys_Monster posted...

Biden's economy.

Lol, shut the fuck up.

Pepys_Monster posted...

Biden's economy.

intels been struggling since 2000 clown

I can't speak for their entire product lines, but it seems as if once the 3rd-generation Ryzen CPUs came out, AMD's secured a pretty strong lead in the PC market

I wonder how many of those jobs were in the US....and how many new positions will be opening in India, Phillipines. Though I imagine most of them are already outside of the US.

AMD has shitty naming that leads to people buying older tech. Looks to be fixed with 8000 series. Intel just has shitty tech.

Here's most of next year.

Arrow Lake-S and Arrow Lake Refresh-S with weak Xe1 graphics and weak NPU for premium desktops
Bartlett Lake-S with weak Xe1 graphics and no NPU for everyday desktops
Arrow Lake-H with Xe1 and weak NPU for gaming laptops
Arrow Lake-U with Xe1 and weak NPU for everyday laptops
Lunar Lake-MX with Xe2 and a good NPU for premium laptops

Most Intel laptops will not be Copilot-ready.

Almost every Hawk Point and Strix Point will have amazing NPUs and graphics.

Starks posted...

Most Intel laptops will not be Copilot-ready.

What if I don't want copilot

Between those boycotting them for ties to Israel (although I've heard they're cleaning up their act on that one? Haven't bothered to confirm tho as I wouldn't consider them right now anyway due to the other two reasons), AMD being vastly superior at the moment, and the stability issues with their recent high end chips, I can't imagine business is too good for them at the moment. I suspect that last one in particular is really hurting them.

Guess they should change their name to Extel...

so messed up. I don't get how Republicans can keep defending this shit

Intel? More like Outel.

Intel having a Boeing moment.

Starks posted...

AMD has shitty naming that leads to people buying older tech. Looks to be fixed with 8000 series. Intel just has shitty tech.

It only applies to the 7000 mobile series and 8000 series. Desktop (besides 8000) and mobile before / after that is fine.

7000 / 8000 are also alright once you know what to look for. The key is to look at the last two digits rather than the first one. 30 is equivalent to 5000 series (Zen 3 / Vega), 35 to 6000 series (Zen 3+ / RDNA2), 40 is newer than either (Zen 4 / RDNA3, and I believe has an NPU too).

8000 is still a little fucked. I can understand entry-level not having an NPU, but apparently the 8745HS won't have one either.

I think it's still up to OEMs to implement USB4, which should be possible across the board this time.

Kinda worried about the future of custom desktop PCs

MagiMarthKoopa posted...

Kinda worried about the future of custom desktop PCs

Why? This stuff tends to happen in cycles. There was approximately a 10-year period (from the release of Core 2 Duo by Intel until the release of Ryzen by AMD) where Intel basically dominated the processor market and AMD was nowhere to be found. Ryzen only came about because AMD was practically dead in the water and needed a home run to stay alive and by God they hit one. The *hope* is that Intel uses this restructuring as a chance to innovate and compete, which will be better for consumers in the long run.

Also big trouble with higher end consumer 13th and 14th Intel processors

SSj4Wingzero posted...

Why?

The good companies like EVGA close and the others like MSI and ASUS keep getting caught doing scummy shit. The quality goes down but the prices keep going up

MagiMarthKoopa posted...

The good companies like EVGA close and the others like MSI and ASUS keep getting caught doing scummy shit. The quality goes down but the prices keep going up

The prices really aren't going up unless you're talking about ultra high-end items. A solid mid-range PC runs you about $900, and since inflation means that your dollar is worth less, the price of a PC is actually *cheaper* than it used to be.

We've also reached a bit of a plateau when it comes to hardware requirements. People are still playing the latest titles on hardware from 7-8 years ago, which would've been unthinkable last decade. I bought a PC with a Ryzen 5 5600 and a RX 6650 XT and I've barely noticed any aging at all - it still plays everything I want it to at high settings. That PC cost me around $850 to build around 2 years ago, meanwhile, if I bought an $850 PC in 2004, it would've been slow by 2006 and unable to play the latest titles by 2008. Compare to nowadays where folks with GTX 1060s are still gaming strong.

I do agree that the premium on ultra-high end enthusiast parts is higher than it's ever been, but that's a problem easily solved by, you know, *not* insisting that anything less than 4K/60FPS is *unplayable* like some PCMR types do

the entire tech industry has been in a bad state all year and cannot absorb another 15,000 laid off workers.

the repercussions from this will be significant.

.. also lol because of how many billions of dollars Bidens government has gifted them since March 2024:

https://www.reuters.com/technology/intel-clinches-nearly-20-bln-awards-biden-boost-us-chip-output-2024-03-20/

shironinja posted...

the entire tech industry has been in a bad state all year and cannot absorb another 15,000 laid off workers.

the repercussions from this will be significant.

.. also lol because of how many billions of dollars Bidens government has gifted them since March 2024:

https://www.reuters.com/technology/intel-clinches-nearly-20-bln-awards-biden-boost-us-chip-output-2024-03-20/

Maybe, just maybe, we should stop it with this ridiculous corporate welfare, or at the very least, make it contingent on maintaining their workforce. The fact that we gave 20 billion dollars to a company that is now laying off 15,000 workers is just egregious.

I think I just found my next two hires.