I have been a L0 employee for 24 years before I left in last October's layoffs. I have observed the managers and management over the years at times wondering if decisions being made are right or, if the right people in the right positions but never lost trust in management. Even after the badly executed ACT in 2016, I still trusted the people at the top and assumed they are better informed than me. But gradually it was becoming clear to me that decisions being taken at the top are ill advised and the Executive management is incompetent to take sound decisions. I wanted to list key events and decisions that made Intel slide downwards incrementally.
2003 - AMD64: It was in the works for a while and Opteron CPUs were released in 2003. Intel (I mean the management) were obdurate and stuck to the line "PCs don't need 64-bit computing" & "Itanium is superior". Itanium was around for a good few years by then to be able to judge if the architecture will ever gain momentum. But yet, PSO determinedly said "Intel never lost an architecture battle". This mistake opened the doors of data center market to AMD.
2006 - SET: Bain or someone advised PSO to separate people management & functional ownership. This decision looked innocuous at that time but has had the most devastating effect on Intel. Career managers got more prominence than technocrats and lead to weakening of technical competence in the decision makers. Machinations by the managers lead to even key technical roles being filled by those with good soft skills but questionable technical achievements. A habit of ignoring technical trends in favor of short term goals took root after this. E.g. declining XBox business, foregoing iPhone business. Where strategic decisions were made, they were found wanting - e.g. Selling ARM business on the premise that Atom can fill the gap, Buying McAfee or betting on half baked Nervana. All were result of the decision makers being advised by some very incompetent staff sorrounding them. The benefit headcount reduction was rolled back soon as PSO announced a revenue target of $70billion and the newly minted empire builders used the chance to take headcount to 100k+ and keep it there. Deterioration of Intel's culture started and has continued.
2012: AB becoming chairman of the board: The pretty much made board oversight useless for vetting strategy and vision. Bean counting became the primary purpose of the board. This also validated a culture of cronyism with PSO favoring his friend becoming the Chairman.
2013 - BK taking over. This moved focus away from execution and put heavy focus on things like DEI, GPTW etc. and rapid decline commenced. Intel poured billions into x86 handhelds market but couldn't come up with a single suitable product. This resulted in tablets with Intel being sold for scrap prices on Alibaba.
2015: ACT - Destroyed the technical talent further. Those who were good at 'managing' their career survived, Those who put their heads down and did the work lost out. There has been a marked decline in execution since then.
I never understood the anxiety of Intel to acquire the companies they partner with - e.g. Altera, Wind River, ending up destroying the shareholder value.
I never managed my career enough to move up the ladder. But I think I was a typical employee who could see that the mistakes were being made but yet kept the trust in the company.
What finally drove me out was the continuous execution issues. Not a single product or process was released on time in the last few years as the company continued to bleed money and talent. To recover, Intel needs a series of very competent decisions and actions, zero mistakes and a strong vision. As things stand, I doubt if Intel has the right people at the top to make it happen.