{Fudz} Intel to cut 5,000 jobs

[NTMBK]

Chipmaker Intel is planning to cut more than 5,000 jobs, or roughly 5 percent of its 107,000 strong workforce. The announcement comes just a day after Intel posted flat quarterly results and announced that the rest of the year won’t be much better.

http://www.fudzilla.com/home/item/33696-intel-to-cut-5000-jobs

 

[Nothingness]

If that was only coming from Fudzilla, I'm not sure I would believe it. But Intel has confirmed: http://www.zdnet.com/intel-confirms-it-is-slashing-workforce-by-5-percent-this-year-7000025317/

 

[grimpr]

Now thats interesting, its something our "cherished" intel financial speculators in the forum missed predicting, how come so? lets hear their opinions, thoughts?

 

[meloz]

I hope most of these cuts come from their marketing department. Stupid processor feature segmentation and bribes, er, ultrabook promotion schemes, that is all they can come up with. Intel's products are strong enough that they do not need these marketing parasites, just decent pricing. The products will sell themselves.

 

[ShintaiDK]

Even Qualcomm with 30% growth rates trim their company.

http://gigaom.com/2013/11/20/qualcomm-quakes-sources-say-layoffs-at-mobile-chip-giant/

 

[ShintaiDK]

I hope most of these cuts come from their marketing department. Stupid processor feature segmentation and bribes, er, ultrabook promotion schemes, that is all they can come up with. Intel's products are strong enough that they do not need these marketing parasites, just decent pricing. The products will sell themselves.

I think it will mainly be manufactoring jobs. Remember D1XM1 and D1XM2 came online. So when 14nm chips starts to roll out. And sales volume is roughly stagnant. Then some workers at other facilities needs to go, plus maybe the entire facility. Its worth noticing that they talk about redeployment too. In other words, move location or get fired. Plus the usual productivity increases. I am sure D1XM1 and D1XM2 for example needs less workers per wafer than any other current Intel fab.

 

[nemesismk2]

that is very bad news

 

[Silverforce11]

Sucks that Intel, with such a market dominance on laptops, desktops, servers, HPC is having financial issues for them to cut 5K jobs.

 

[ShintaiDK]

Sucks that Intel, with such a market dominance on laptops, desktops, servers, HPC is having financial issues for them to cut 5K jobs.

So they should just have people sitting idle around rolling their thumbs? Not to mention idle in the wrong location as well.

 

[jpiniero]

It's got to be more than just people at the now-idled Arizona fab though.

 

[PPB]

You know things arent okay when you see people justifying as many as 5k layoffs.

 

[inf64]

5% layoff IS huge number, there is no point trying to lowball this.

 

[witeken]

I just read that there is a yearly natural decline of 4% of the employees, so maybe it won't be as much as it seems?

Edit:

"I'd like to clarify that we are not announcing a layoff. Business groups are developing plans to reduce spending and this will include some reduction in headcount. In addition, we are realigning and refocusing our resources to meet the needs of the business. When we talk about reduction of the workforce there are a number of things that can happen. It could include redeployments, voluntary programs, retirements, and through attrition. All are options so it would be wrong to conclude this is a layoff. Our usual rate of attrition is close to 4 percent worldwide."

 

[frozentundra123456]

Not a good thing, but "slashing" your workforce seems a bit of a sensationalist headline. Every industry is trying to meet their demands with fewer employees. This is not to minimize the pain of those who lost their jobs, but that is how it is today.

It was not a great quarter for Intel, but not a disaster. Overall though, Intel definitely faces challenges as they try to move into lower margin ultramobile markets. I could even see more reductions in the future, since I am sure there is a lot of inefficiency in a company as large as Intel that has been awash in cash.

 

[Enigmoid]

Its Human resources.

http://www.reuters.com/article/2014/01/17/us-intel-jobs-idUSBREA0G1I420140117

"This is part of aligning our human resources to meet business needs," spokesman Chris Kraeuter said.

IMO every large company has an excess of human resources.

 

[ShintaiDK]

I just read that there is a yearly natural decline of 4% of the employees, so maybe it won't be as much as it seems?

Edit:

"I'd like to clarify that we are not announcing a layoff. Business groups are developing plans to reduce spending and this will include some reduction in headcount. In addition, we are realigning and refocusing our resources to meet the needs of the business. When we talk about reduction of the workforce there are a number of things that can happen. It could include redeployments, voluntary programs, retirements, and through attrition. All are options so it would be wrong to conclude this is a layoff. Our usual rate of attrition is close to 4 percent worldwide."

Wow, so there are no layoffs. Just a natural lowering of the workforce via the normal churn rate. But that doesnt sell clicks :/

Not a good thing, but "slashing" your workforce seems a bit of a sensationalist headline. Every industry is trying to meet their demands with fewer employees. This is not to minimize the pain of those who lost their jobs, but that is how it is today.

Yep. Productivity increase also means less hands needed. Unless volume goes up. Same reaon why 1% is farmers today instead 80% like in the past. And it seems there wont be any layoffs at all.

 

[Gikaseixas]

I'd like to clarify that we are not announcing a layoff. Business groups are developing plans to reduce spending and this will include some reduction in headcount.

PR talk at it's finest
I'm not happy with this news as i support the PC industry but is so funny to see how roles reverse when the bad news is not about a certain small player...

 

[Homeles]

PR talk at it's finest
I'm not happy with this news as i support the PC industry but is so funny to see how roles reverse when the bad news is not about a certain small player...

Correct me if I'm wrong, but those are two completely different scenarios. In one case, we have a company that's fighting for survival, and in the other case, we have a company that is surviving just fine, but is struggling to grow.

 

[frozentundra123456]

PR talk at it's finest
I'm not happy with this news as i support the PC industry but is so funny to see how roles reverse when the bad news is not about a certain small player...

Well, so far posters have showed admirable restraint not mentioning that company, but if you want to go there.......

 

[2is]

So they should just have people sitting idle around rolling their thumbs? Not to mention idle in the wrong location as well.

That isn't what he said. He just said it sucks that they had to cut jobs.

 

[Lonyo]

Wow, so there are no layoffs. Just a natural lowering of the workforce via the normal churn rate. But that doesnt sell clicks :/



Yep. Productivity increase also means less hands needed. Unless volume goes up. Same reaon why 1% is farmers today instead 80% like in the past. And it seems there wont be any layoffs at all.

Yeah, more a hiring freeze and reorganisation than layoffs, which makes a lot of sense if you look at Intel's markets and competitors now vs say 3~4 years ago.

 

[NTMBK]

Wow, so there are no layoffs. Just a natural lowering of the workforce via the normal churn rate. But that doesnt sell clicks :/

Normal procedure would be to hire replacements to fulfil the roles which those people used to fill, not just letting the numbers drop. Thank god it's not full blown layoffs, but the fact that they're shrinking their workforce is bad news. But I'm sure they'll be fine.

EDIT: Of course, this could be a sign of the new CEO making his mark on the company. A new boss rolls in with big new ideas, and a clear idea of which areas are wasteful and could do with going on a diet.

 

[Torn Mind]

I speculate many of their workers with six figure salaries are the prime targets, as eliminating cheaper labor isn't going to help them much in holding onto more money in the grand scheme of things....