So they got all that money from Uncle Sam’s CHIPS Act only to lay off 10,000 employees and make themselves “lean”. Govt funded unemployment.
There’s a dude in wallstreetbets who dumped a $700k inheritance into Intel stocks. lol
Layoffs will make the stock go up. It’s bizarre.
My experiences working for huge corporations have made it clear what an enormous percentage of corporate workers spend all their time on useless busy work, so in theory layoffs can make a corporation more profitable. The problem is that it’s rarely the useless ass-kissers who get laid off.
Yeah, my team has gotten cut and the end result is one management type person per person actually doing anything… They are “managing” teams of one each, effectively…
I just started a corporate job a while ago and they still can’t really tell me what I’ll be doing. My onboarding plan suggests that in month 2-3 I’ll be ready to get into it. Like, dude, wtf?
Just focus on the most important thing: going out drinking with the right superiors.
If the bureaucracy could easily identify the dead weight projects it wouldn’t need the layoffs but that also means it can’t make good choices when doing layoffs.
It’s like chemotherapy.
Layoffs usually cause the stock prices to increase because it shows the company is being “lean” and “cutting the fat”.
Yeah, Intel is down 33% over the last two days… didn’t work this time…
Some layoffs can be seen as “improving efficiency”. This deep of cut is “oh shit, things are screwed”.
It has me oddly hopeful. It sounds like they may have finally realized that they can’t ignore their core product/purpose. However, whether it’s too late or if they have the ability to actually execute is still to be seen.
Frankly, no idea. They talked the talk, but it’s vague enough that I wouldn’t be surprised if they cut out some important people and kept a lot of the bogus crap.
Speaking from a company that has seen (less dramatic) rhetoric around similar circumstances, and everyone on the ground who understood nuance would have guessed certain projects to get canned. Then it turns out they treated the money losing projects as the sacred cows and cut the profitable projects to the bone and put them at risk rather than give up the losers.
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The stock is down 30% so far, so I think you may not understand investors very well haha
I had a friend in the '90s who took a $40K inheritance and “invested” it all on $75 Fossil watches, the kind with Popeye and other cartoon characters on them. At least she was able to show them off at parties and get all the guests to go home.
Dude, what the heck is wrong with people. Wealth is wasted on the stupid.
What’s the problem? They put the money back into circulation. That’s a good thing, no?
The problem is that it is just poor money management. He could’ve been set for life. Put that into an index or S&P500 and get 10% every year. That’s 70k and he wouldn’t even have to work. If you took that 70k and invested back into the fund, you can double your money in about 7 years, assuming 10% returns.
Yeah I agree. That’s what I would’ve done. You saying that wealth is wasted just made it sound like the money dissapeared somehow. He wasted his chance on financial independence, sure, but that’s not away from the rest of us.
The wealthy hoard their gold. They don’t circulate it.
its mainly that our modern culture worships money and things whoever has more of it is inherently better.
So rich people make bad decisions because they think that being rich means they are always right, and that their ideas are special and magical and come from a mystical realm of refined thought only people with stacks of cash possess.
And when they fail, they blame everything except their greed focused short sightedness.
Holy F, what an idiot nepo baby. Maybe daddy who pays for college works as a VP at intel
Meh, he bought a significant dip, even if it goes lower in the coming months, in a few years he will be way up. It’s not like Intel will go away, they are in a duopoly market.
Intel has been down from around 50 YTD to 30 likely in a few years it will be back to 50 and he will close to double his money
Though he could have probably just put the 700K into S&P 500 and have his retirement taken care of, since he is in his 20s
Yeah but still… could’ve at least waited a day
At this point I’m starting to think that if you want to subsidize semiconductor manufacturing in the US the Global Foundries might be a better investment. At least they’ve already hit rock bottom.
So, buying opportunity?
Man I really should’ve bought some Intel instead of Nvidia.
Wait, their stock is 30% down today, what happened?
The entire stock market is a casino for rich people and the rest of us are just hoping we can scratch a retirement out of it?
Yeah, I guess.
“Here is more evidence that our system is fundamentally broken and doesn’t serve the people who make it run anymore”
You: “How can I profit from this?”
You sound like a CEO in the making.
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Even Marx dabbled in the equities markets.
People seem to think having an economic philosophy is the same as having a moral philosophy. Absolutely not. If you look at a system and conclude “This is dysfunctional, it’s leaking money everywhere” that doesn’t preclude you from getting a sponge and mopping some of that money up.
Would be awesome if DARPA bought them…
Anyone else still beliving capitalism will do R&D willingly? Even most recent and hyped(not without reason) development - powervia - came from institute from former soviet bloc.
Wow, intel must really be struggling if they need to lay off this many people. I don’t think it’s reasonable to invest in Intel at this time.
Or well, I think news of layoffs should always be interpreted in a way that’s pessimistic for shareholders.
Have you seen the performance and efficiency of these arm chip? The performance and battery life of Apple’s chips compared to the Intel chips before then? Intel should be absolutely embarrassed.
There’s no corporate death penalty, but there is corporate death from alcoholism, coke overdose and syphilis.
I mean, you do a TRAFU and instead of firing those logically responsible for it you fire your actual troops.
This basically means they failed to find scapegoats inside the company who wouldn’t be management themselves.
Wow.
I work in the industry and my understanding of the chips act is certain goals must be met in order to receive money. Something like in order to get this 50 million, you must buy 100 million of new equipment and facilities improvement. In order to get this 25 million you must have 50 million worth of new jobs. These requirements were also spread out over years so you couldn’t artificially inflate your work force or sell off equipment.
Not saying Intel doesn’t suck, but I doubt they are getting chips act money now. Or they will have to have a big turn around in the next few years to do so. They certainly aren’t getting a free 8 billion.
These layoffs will only be for a quarter or two. Just enough for the c-levels to unlock their full bonuses.
And create a glut in their labour market niche, which will take many years before the wages recover to what they were. In the current 20 year permanent labour shortage scenario, this is the way to prevent wages from increasing. Sure these demand shocks will create issues by they’re making the bet the lower overall expenses for wages will make it all worth it. This is them leveraging the imbalance of power been employer and employee
If only there were some tried and tested method for the working class to join together and create a power block equal to the company in order to negotiate better pay and conditions and avoid these outrageous tactics. Pity
Exactly! And then the Government can declare you an essential service and take away all your bargaining power!
Oh wait…
More like oh no, here I go molotoving again.
The money needs to return to the government. Some wealthy fucks are lining their pockets.
While Intel has absolutely been losing money on its chipmaking Foundry business as it invests in new factories and extreme ultraviolet (EUV) lithography, to the tune of $7 billion in operating losses in 2023 and another $2.8 billion this quarter, the company’s products themselves aren’t unprofitable.
So what I’m getting here is that the CEO and or the board decided to invest in something that is losing a ton of money and so now 15% or more of the people who have been working diligently to actually make the company money are going to pay for it by losing their job.
That’s definitely a huge issue but they’re going to have a hell of a time on the overcooked processors on the market right now. They’ve sold a hell of a lot of defective product over the past couple of years. Consumers and third parties are going to come after them for refunds. Consumer confidence is way down. They’re going to have a hell of a time trying to sell 15th gen to people. Everyone I know who knows what in the hell is going on is going to AMD.
Consumer confidence is way down. They’re going to have a hell of a time trying to sell 15th gen to people. Everyone I know who knows what in the hell is going on is going to AMD.
I’ve been in the industry since back when AMD actually was making the processors for Intel. And people have been saying this exact thing every time there’s a fluctuation in the processor market. Yet Intel still basically owns the market anyway.
The failure in Intel isn’t their processors, it’s their management.
I mean you can’t blame the rocks, of course it’s the management :)
You have a hell of a love for that phrase!
So what I’m getting here is that the CEO and or the board decided to invest in something that is losing a ton of money
Intel has an enormous technical debt that they’re finally struggling to pay back after they hit a brick wall with their 7nm Titanium chipset.
It isn’t that this is wasteful spending so much as it is big upfront costs for future productive development.
That said, the fact that this work has to be government subsidized in order to be done raises the question of why this business is private at all.
I’m not sure I want the gov and huge amounts of my tax dollars going to operate federal gov chip fab plants. On the other hand I get your point that it is so heavily subsidized it is practically a de facto situation anyway.
I’m not sure I want the gov and huge amounts of my tax dollars going to operate federal gov chip fab plants.
That is ultimately what the subsidies amount to.
On the other hand I get your point that it is so heavily subsidized it is practically a de facto situation anyway.
I think the question isn’t “Do I want my tax dollars going to X?” (because they’re going there whether you want it to or not - semiconductors are an essential industry in a modern post-industrial nation). The question is how you want the business to operate. As a for-profit venture focused on returning the maximum profit to shareholders over the smallest time frame? Or as a public utility, focused on generating a sufficient quota of useful products for a fixed unit cost?
Part of the problem with the Western/Americanized economic system is that the second kind of enterprise is increasingly difficult to find. And where it does exist (the USPS, the state university system, the federal reserve, the SEC/FAA/EPA) there’s been so much privatization and regulatory capture that these institutions appear incapable of fulfilling their mandates.
But constantly diverting responsibility for fixing the problem by saying “I don’t want my tax dollars involved in this failed thing” doesn’t get us any closer to a solution. At some point, the public (and by extension the state bureaucracy) has to engage with our corrupt and failing economic cornerstones. Otherwise, we just become beholden to the nations we import from.
“Let Saudi-ARAMCO handle it” isn’t a solution I find particularly appetizing, either.
Doesn’t the US have semiconductor chip sanctions in place on China, specifically because it’s a national security concern? If semiconductors are that big of a deal that we need to sanction China over them… maybe they should be nationalized.
Doesn’t the US have semiconductor chip sanctions in place on China
Taiwanese Semiconductor is the global industry leader, and half of their output is sold to China. Korea and Japan are also major exporters. The Chinese manufacturers don’t care about losing access to Intel chips, when they’re a generation behind the curve anyway.
maybe they should be nationalized.
Wall Street would flip its lid if the US tried to nationalize Intel.
That’s exactly what happened, and that’s how layoffs always work.
The losses of the horrible decisions of the board/owners/management/etc are paid for by the blood of the workers. It’s so wonderful and very fair.
I think it’s even more absurd than that. The CEO/board decided to make a long-term investment which wasn’t going to pay off for several years. To what should be the surprise of no one, that meant short term losses.
Framing an investment in a massive amount of new infrastructure as a loss because it didn’t immediately start operating in the black is beyond unreasonable, but that’s the demand when all that matters is quarterly gains and year-over-year growth.
I guess Intel needed that QA team, after all.
Stop “non-essential work”…
But I bet they’ll still ship bloatware updates for Windows
Intel is not Microsoft
I’m talking about all those Intel programs that come preinstalled.
“Intel device smart updates” “Intel audio control center”
That kind of garbage
Those would only be preinstalled if your motherboard has the requisite hardware and you download the drivers and the utilities it wants you to download. They arent preinstalled in any windows ive used, pc or even laptops. Theres a lot of shitty bloatware out there, but intel is hardly worth mentioning in that arena. And theres such better things to make fun of them for too, lol.
It does come pre-installed on some computers depending on the provided OS and the changes made by the manufacturer. If you install your own fresh version of windows, it should only be installed if windows believes you need it for the component to function.
My last pre-built came with a bunch of garbage before I wiped it with a fresh copy of windows and almost all went away. I would certainly not say Intel is the worst though, older dell machines and even relatively modern HP machines come with a bunch of “necessarily for the component to function” garbage that can’t really be uninstalled easily (windows will reinstall them).
they fired the guy that single handedly managed meshcommander https://github.com/Ylianst/MeshCommander
it was a tool to remotely control intel vpro machines, intel’s own tool is not as good as what the old ex-employee did in his free time
That’s not surprising if you know how software products nowadays are planned and built in bigger companies.
It’s harder to do it with 50 people than with 5.
Somebody should make a Borat Meme with AMD and Intel “Big Success!”
Done.
Thank you kind sir!
What the actual fuck
So they’re only keeping marketing?
I just sat through a “town hall” at a former GSK now Haleon site and a site director assured people that volume was coming back through nothing but the power of marketing alone. Apparently 8 dollar tubes of toothpaste are non sellers in a tight market. Who knew.
