I’m hearing rumors of entire orgs being gutted. SMG supposedly will be entirely outsourced to Accenture. Teams that survive are getting 20-50% HC reduction. Over 1000 impacted in FM alone. Maybe this is just the US, but does it feel like way more than the 20% figure being thrown around?
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@b4 Who is to say what level of ELT pushback has been, but it sure looks like it took some effort by LBT and the Board to get them to realize this is not just another slice of bread to be cut off.
Once that sunk in, then you see them acting on that reality.
I'm sure they understood that some groups would be eliminated and that the management structure would be flattened, but the delays show that they still underestimated the full scope of what the new strategy expects them to do.
I'm guessing by now they got the message. Get to it or be fired.
Even the fabs are starting to get real, and I don't recall that ever happening before. They've had cutbacks but there are a lot of upper management in the Fabs and especially TD that have never dealt with this level of reduction in their careers.
Support groups are at the leading edge, rightly or wrongly considered to be disposable, and are showing what it means to outsource entire job functions. That is the future and so is coming to fab and product engineering in due time.
The new strategy may lead to failure and certainly carries serious continuity risk, which may also have caused some delays in execution.
But what it is replacing was a company with a cash-burning platform, a more guaranteed failure in short order. This is an attempt to right-size the org to what appears to be x86 in long-term decline.
Every architecture has an arc and x86 peaked about 10 years ago. Maybe IFS will generate revenue growth in the future but Intel needs to get much smaller before it can grow again, shedding older fabs and non-core products. This should have been the IDM 2.0 strategy from the start.
Well OP, that depends on how a 20% layoff makes you feel.
After all, it's all about your feelings, now isn't it?
I don't believe the company ever announced that it was intending to lay off 20%.
@a9 penny wise - pound foolish
Don't panic folks. People who say "my org" when quoting numbers are lying. If they are having proper information and are quoting true numbers, they would have named the orgs.
80% or more in my org. Shocking.
OP, maybe the announcements were pushed out a month so they could plan a bigger reduction. In any case, it won't be the last cycle. Give the company 6 months to stabilize and finish reorgs after this round and another round will start. The real target is probably in the 40K range for remaining BB employees. That number will go down further in the next few years after they get better at managing GBs.
@ad ... and you wonder why the company has gone to sh!t... all the downfall started around 2000. Oh wait, that's the same time that we started shipping work to India.
In my Org in AZ it's 35% cuts
In our team it's 23%
@a9 100K in Vietnam! Yeah, more like 50K!
Cut in U S., hire in India. The usual. 😂
Dude. He speaks to the fab because those are the critical roles, that will be 20%. Business functions I would expect closer to 50%.
Typical Intel employee myopia. Yes, the impacts in the US and EMEA will be much larger than the stated 15%-20%. Why? Because the cost per head is 2x-5x the cost of someone from a low cost region. So for Intel to achieve outsized savings for Sweater Boy Judas, he's going to carve up HC in high cost regions, and high cost positions... while keeping lower cost regions flat to up. Net-net, it'll be a HUGE savings for Intel. A G9 in the US prob cost $300K-$350K in TCOMP... someone in Vietnam, prob $100K max... the higher the grade, the bigger the savings.
All these are fake news. Only 3k total layoffs this year.
LBT is comparing Intel HC to TSMC and Nvidia, AMD. It will be huge..that is for certain.
no matter how many are cut.. it's just too late now... the company is D-E-A-D !!
20% is just the beginning, do the math against the competitors, more is a certainty
How do you know 1k in Folsom?