Forget the usual trolls and use your head. Our own leadership told us that expenses as a percentage of revenue needs to stay below 30% or there are major problems. You can either grow revenue or cut spending, and the plan from leadership has been to grow data center and IoT by 15%+ while minimizing PC losses. Well, the latest financials show much lower than expected growth and rising headcount which caused this ratio to hit ~37%.
Here are the facts from Q1 financials:
R&D (engineers) - $3,326M
Selling/General/Admin (ie MS&A, ie non engineering jobs) - $2,104M
--> OPEX was $5,430M
Total Revenue - $14,796M
--> OPEX/Reveue ratio was 36.7% ($5,430M / $14,796M)
You would have to cut OPEX by $990M (ie 18% headcount reduction) to hit the target. Or you could hold headcount and grow revenue to $18,100M (ie 22% revenue growth). We all know that isn't happening given all the market realities. They will have to split the difference somewhere, and even 10% is huge considering some groups won't be touched.
I have heard several credible rumors from lots of different folks in different engineering groups. Look around. Even internal hiring is frozen. Layoffs have begun. This is real.
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