Intel revenue in 2019: $72B (88.5B if you adjust for inflation)
Intel revenue in 2024: $53B
Intel revenue decline of 40% adjusted for inflation.
What about headcount? 110,000 in 2019... and guess what... 108,900 last year.
Intel headcount needs to be right sized to 66,000 (inflation adjusted).
No, this layoff isn't the end.
I am involved in preparing for reductions in mid October, the purpose is to have scope for quick headcount reduction before Christmas. I know this is not what people need to hear right now. My advise is to get a plan B in place , plan for the worst and hope for the best ! The goal is 60k headcount by quarter one 2027. Good luck everyone.
You staff to bring in the revenue so like stock investors its for what you expect not today’s numbers
But i hear you that we expect continual decline and hence need continual layoffs
It needs to be whittled down to around 30,000 since future demand is projected to fall significantly with the rise of china.
Not even clear this round will be more than a few thousand.
The company has to get serious about selling off the older fabs and non-core product groups, to make a dent in the headcount.
Outsourcing will be a big thing but the essential issue is that ELT is still to this day trying to keep their fiefdoms, to justify their own (total) compensation.
A stronger Board would deal with that, but who are we kidding?
This is AI math. You cannot equate headcount and revenue. This has been Intel’s problem for years. Just when they need to ramp up, they lay people off because revenue drops between the end of one process node and the ramping of the next. This used to be a bit of downtime that you spent learning. Now they layoff tribal knowledge, and new people need to learn everything about Intel and the new process.
Round 3 will have to happen by year end.