[BizInsider]Intel confirms layoffs

[NTMBK]

http://uk.businessinsider.com/intel-ceo-brian-krzanich-confirms-layoffs-2015-6?r=US

Intel CEO Brian Krzanich confirmed recent reports of layoffs in a company-wide email sent out earlier this week, The Oregonian reported.

“Yes, we are implementing headcount reductions,” he wrote in the internal memo. “With today’s incredible pace of innovation and change, companies consistently need the flexibility to invest in skills and experience required in new growth areas.”

Little worrying, hope it's nothing too severe. Fudzilla is claiming 5%, but I'm not sure where they got that from, so it could be BS.

 

[ShintaiDK]

Why is it worrying? Its a normal productivity layoff. If productivity increases 5% and you dont sell 5% more. Then you need less people.

The problem is when you cut in lumps of 15-20%.

 

[frozentundra123456]

Even Fudzilla quoted BK as saying it was mostly not replacing staff that was leaving voluntarily. Still not a good sign though.

 

[Sonikku]

Why is it worrying? Its a normal productivity layoff. If productivity increases 5% and you dont sell 5% more. Then you need less people.

The problem is when you cut in lumps of 15-20%.

Kinda makes you wanna be less productive. D:

 

[ShintaiDK]

Kinda makes you wanna be less productive. D:

Nah. Its how it works. Else 90%+ of the population would still be farmers.

 

[Enigmoid]

This is a required process that I wish more companies went through. You have to prune the bush, getting rid of weak branches to create a stronger tree years down the road. Companies have a tendency to acquire bloat as time goes by, especially in administration and human resources.

IMO this is likely intel trying to get a little leaner and meaner. Before they could employ a padded workforce but if they want to move into lower margin markets there is some in home cleaning to do. 5% is relatively small and to be expected, especially after their recent acquisition.

It really depends on where the cuts are coming from.

 

[jpiniero]

This is a required process that I wish more companies went through. You have to prune the bush, getting rid of weak branches to create a stronger tree years down the road. Companies have a tendency to acquire bloat as time goes by, especially in administration and human resources.

But it's not really what they are doing though. These job cuts are mainly to make the numbers look better.

 

[WhoBeDaPlaya]

But it's not really what they are doing though. These job cuts are mainly to make the numbers look better.

Gotta keep dat EPS high so that C-level execs can keep living the playa's life.
Same thing's happening at my place right now.

And how the heck did a large fish (Broadcom) get swalled up by a little fish (Avago)?

 

[ignatzatsonic]

I had my ear halfway turned to the TV last night and I think they said that 1100 people would be laid off from Intel's Chandler AZ facility. May have misunderstood as I wasn't paying a lot of attention.

 

[ikachu]

Gotta keep dat EPS high so that C-level execs can keep living the playa's life.
Same thing's happening at my place right now.

And how the heck did a large fish (Broadcom) get swalled up by a little fish (Avago)?

They are actually about the same size in terms of market cap. One of the advantages of Avago buying Broadcom is that the headquarters will be in Singapore which is beneficial for tax purposes.