Thread regarding Intel Corp. layoffs

Enhanced retirement package is good, take the pkg, 52 wks pay, 1 yr addition registered stock units, 18 months health care ... thank you Intel. It is not a layoff just early retirement for 1 S.D. Time in grade. Enjoy!

path to 30 extends act to 2019

It is going to be small and steady cuts now instead of a big bang like ACT.

When BK announced ACT in April 2016, he already said it'll last until 2017.

Fake math

🤡 math with many lies

No one is stuck in this company, especially if you are still young. For a young and capable engineer, giving the current status of Intel, layoff may not be a bad thing. In some cases, the sooner, the better. No fear.

It's all about "low cost GEOs"...I have just been laid off despite my last Focal of "Outstanding" and SSL1...my job has gone to BA.

As always, an Engineer is simply a head-count number..there is no finesse about quality or what you have achieved for the company.

For the record, pleased to be kicked out...

The problem is that this will be cost-cutting disguised as strategic restructuring but will neither resolve the grand strategic questions that plague the company - what does Intel do in the post-PC era? - nor will it lead to better execution of existing programs and strategies.

And the deep, oozing cultural problems remain: there is no trust in leadership or management; people get ahead - or get fired - for the wrong reasons; risk-taking and leadership are a liability; and there are few if any "leaders" in Intel capable of guiding the way out.

PEG and TMG are going to get the hammer. So will Altera, which was spared last years. DCG is going to shed all of DB's pet projects. Will AI (i.e. Nervana) stand alone?

Also agree that this isn't going to be a big layoff announcement. But there will be a "restructuring to win the future" one with the focus on "streamlining" programs and activities. And "redeploying" people.

When's the next earnings announcement?

No one needs to guess its in the public presentations they made to investors.

https://www.intc.com/investor-relations/events-and-presentations/presentations/default.aspx

Read through them and its clear they want to reduce R&D, back to the norms before the whole going into phones debacle of the last 7 years. And BK in his BUM showed all the details and even a graph with numbers. R&D is 23% and needs to go to 20% by 2019

Math tells me that 3/23 = 13%. With 90% of the cost in PEG and TMG (the two big R&D groups) being HC, plus its hard to cut other cost like tools, SW etc that make up the other 10% without cutting HC it would seem 13% over the next two years would make sense. PEG is ~20000 so 13% is 2600. Simple math.

But its worse than that... As jobs move from OR to BA, moving to low cost geos and outsourcing on top of this means to go down 2600 and geo shift, cuts in US and Israel will be closer to 25% over the next two years. And it will probably be done in the spirit of we are getting more efficient, small cuts here and there so no one notices, managers with small spans, small teams disappear... no big announcements, no big ERP package.. just a tap on the shoulder and small redeployment package and find a job and your out. The pie will be getting small managers will be guarding turf and what is left of collaboration will go poof... it will be dog eat dog as the engineering world shrinks around them.

ACT last year was nothing compared to what was broadcast by management to employees and Wall Street. This will be a major change. Not sure Intel technical culture survives this...