Fudzilla: Intel slashes staff in Washington, Sells DuPont site

[SiliconWars]

http://fudzilla.com/home/item/32821-intel-slashes-staff-in-washington

It plans to sell the building and lease back enough space to keep its 310-person server development and validation team working there.

As you can see from this thread, only companies in real trouble would do such a thing. With a mediocre quarter due tonight the shareholders will expect to see some changes, which means cutting and laying-off their way out of trouble in the short term.

 

[frozentundra123456]

Wow, really reaching to find something negative aren't you?

 

[SiliconWars]

Wow, really reaching to find something negative aren't you?

? In case you didn't know, I'm not an author at Fudzilla or any of the other sites reporting this news.

It is however interesting to see that Intel is not immune to the PC market conditions, as many seem to think they are.

 

[BallaTheFeared]

He was obviously pointing out your need to connect bankrupt AMD with Intel and spin it to act as if the two were in someway similar.

 

[SiliconWars]

AMD is not bankrupt, and both are in a very similar position - that is teetering on the brink of irrelevancy in the post PC world. The problem here is that none of you Intel guys believed it even after many posts explaining the situation to you. Well, this is just the start.

 

[BallaTheFeared]

Ok :thumbsup:

 

[CHADBOGA]

AMD is not bankrupt, and both are in a very similar position - that is teetering on the brink of irrelevancy in the post PC world. The problem here is that none of you Intel guys believed it even after many posts explaining the situation to you. Well, this is just the start.

So because AMD is irrelevant, Intel must now be too.

 

[blackened23]

Wow, really reaching to find something negative aren't you?

There are no surprises with his posts, indeed. He posted that a single 290X will beat SLI titans in BF4 a while back, and also posted that AMD's and intel's financials are supposedly "similar".

He's got jokes, i'll say that.

 

[frozentundra123456]

I read the entire article. It did not even state that any jobs were lost. Some were being relocated, some were being retained in a leased back site. Less than 700 out of over 80,000 total employees were being affected in any case. That is less than 1%. I am sure that spells the death knell for Intel.

BTW, what percent of its workforce has AMD laid off???

 

[SiliconWars]

As I suspected, this news would be met with the typical deflections while ignoring the point.

The point is, Intel is in trouble. What goes for AMD goes for Intel - as others put it in the AMD sale and leaseback thread, you don't do this from a position of strength. Clearly AMD is not in a position of strength, we all know this. What most of you are missing and still refusing to accept is that neither is Intel in a position of strength.

You don't go making these kinds of cuts from a position of strength.

 

[Abwx]

I read the entire article. It did not even state that any jobs were lost. Some were being relocated, some were being retained in a leased back site.

Actualy it s the same site , it s just that Intel want to get
rid of this property and lease it back , this could be due
to eventualy lower property taxes for the new owner
and thus a lower overall cost for Intel , at least on the
short term.

 

[SiliconWars]

I read the entire article. It did not even state that any jobs were lost. Some were being relocated, some were being retained in a leased back site. Less than 700 out of over 80,000 total employees were being affected in any case. That is less than 1%. I am sure that spells the death knell for Intel.

BTW, what percent of its workforce has AMD laid off???

What about the 1100 last month? http://www.oregonlive.com/silicon-forest/index.ssf/2013/09/intel_will_close_massachusetts.html

And this time it's 380 - http://www.theolympian.com/2013/10/14/2775649/intel-selling-dupont-facility.html

I wonder if any of you actually bother reading Intel news or are so obsessed with AMD that you only read stuff about them instead?

 

[Abwx]

As I suspected, this news would be met with the typical deflections while ignoring the point.

The point is, Intel is in trouble. What goes for AMD goes for Intel - as others put it in the AMD sale and leaseback thread, you don't do this from a position of strength. Clearly AMD is not in a position of strength, we all know this. What most of you are missing and still refusing to accept is that neither is Intel in a position of strength.

You don't go making these kinds of cuts from a position of strength.

I wouldnt bank on Intel being short of money in the coming
times , it could well be a preventive strategy that consist
to sell assets that are not strategicals or related to the core
business although i dont think that selling real estate assets
is really a good deal on the long term.

 

[SiliconWars]

I wouldnt bank on Intel being short of money in the coming
times , it could well be a preventive strategy that consist
to sell assets that are not strategicals or related to the core
business although i dont think that selling real estate assets
is really a good deal on the long term.

Yes it's a preventative measure, but the point is they weren't doing all this a year ago. They've got a lot of money but they need to spend it as well. These recent cuts and the cuts to CAPEX are necessary because Intel is under severe pressure from the ARM guys.

 

[Abwx]

Yes it's a preventative measure, but the point is they weren't doing all this a year ago. They've got a lot of money but they need to spend it as well. These recent cuts and the cuts to CAPEX are necessary because Intel is under severe pressure from the ARM guys.

Right , and also under their own pressure since they re
using 22nm excess capacities to fab BT chips that are
sold at prices hardly paying for the dev costs and process ,
hence the need to shut down their second rate fabs
that are limited to 32nm , that s the price to pay
to get their leading edge fabs running within amortizations
expectations.

 

[Arkadrel]

As I suspected, this news would be met with the typical deflections while ignoring the point.

The point is, Intel is in trouble. What goes for AMD goes for Intel - as others put it in the AMD sale and leaseback thread, you don't do this from a position of strength. Clearly AMD is not in a position of strength, we all know this. What most of you are missing and still refusing to accept is that neither is Intel in a position of strength.

You don't go making these kinds of cuts from a position of strength.

Yes you do.
Its healthy to cut away dead weight it you find some.

Whos to say how important that staff + DuPont site where? maybe Intel didnt think it was worth much anymore and decided to save some cash that way? Thats just smart bussiness.

 

[SiliconWars]

Yes you do.
Its healthy to cut away dead weight it you find some.

Whos to say how important that staff + DuPont site where? maybe Intel didnt think it was worth much anymore and decided to save some cash that way? Thats just smart bussiness.

It's engineering R&D and server validation...and they are keeping the server validation guys.

http://www.intel.com/content/www/us/en/corporate-responsibility/intel-in-washington.html

 

[Abwx]

Yes you do.
Its healthy to cut away dead weight it you find some.

Whos to say how important that staff + DuPont site where? maybe Intel didnt think it was worth much anymore and decided to save some cash that way? Thats just smart bussiness.

In whatever business a dead weight is a division that
has not/has no more enough market penetration for
its activity to be sustained within profitable margins
either because its offering is not competitive or became
inadequate/obsolete in respect of the market trend.

 

[SiliconWars]

We all knew (I think) that Intel would cut it's way out of trouble, what is suprising is the level and type of cuts though. These are engineering jobs that are going, and I don't believe you do that unless it's out of necessity.

 

[CHADBOGA]

As I suspected, this news would be met with the typical deflections while ignoring the point.

The point is, Intel is in trouble. What goes for AMD goes for Intel - as others put it in the AMD sale and leaseback thread, you don't do this from a position of strength. Clearly AMD is not in a position of strength, we all know this. What most of you are missing and still refusing to accept is that neither is Intel in a position of strength.

You don't go making these kinds of cuts from a position of strength.

When Intel sells their fabs, then one can begin to talk about equivalence between Intel & AMD.

Yes it's a preventative measure, but the point is they weren't doing all this a year ago. They've got a lot of money but they need to spend it as well. These recent cuts and the cuts to CAPEX are necessary because Intel is under severe pressure from the ARM guys.

I think you need a better dictionary, one that adequately explains what "severe" means.

In your confusion, you seem to have mistaken a short term disadvantage for Intel in some areas, with the long term future.

Very shoddy thinking.

Also you have failed to grasp that ARM is a challenge for Intel to beat down, but ARM is the death knell of AMD.

 

[SiliconWars]

When Intel sells their fabs, then one can begin to talk about equivalence between Intel & AMD.

Maybe I should link this again? http://www.oregonlive.com/silicon-forest/index.ssf/2013/09/intel_will_close_massachusetts.html

I think you need a better dictionary, one that adequately explains what "severe" means.

In your confusion, you seem to have mistaken a short term disadvantage for Intel in some areas, with the long term future.

Very shoddy thinking.

Also you have failed to grasp that ARM is a challenge for Intel to beat down, but ARM is the death knell of AMD.

Weird, I don't see the ARM guys gunning for consoles or graphics but I do see them gunning for the x86 server market.

 

[BallaTheFeared]

Fab 17 is 130nm, 130nm :thumbsup:

 

[CHADBOGA]

Maybe I should link this again? http://www.oregonlive.com/silicon-forest/index.ssf/2013/09/intel_will_close_massachusetts.html

Why would you link it again?

Do you have some strange desire to make yourself look foolish by posting links to irrelevant stories?

Weird, I don't see the ARM guys gunning for consoles or graphics but I do see them gunning for the x86 server market.

Since when is gunning for something, "severe pressure"?

Is Intel under "severe pressure" from AMD in the x86 server market?

By your great logic, one would have to say yes.

 

[SiliconWars]

Ok to summarise :-

AMD sells and leases back some unknown packaging facility in singapore (all jobs kept). The sky is falling, doom and gloom etc.

Intel shuts down one fab (yes I realise it's an old fab, that's not the point), shuts down an engineering R&D centre, sells and leases back another building - altogether some 1500 jobs lost. Business as usual, no problem here. Oh, let's not forget the double CAPEX cut this year (and would you be surprised to hear about another tonight? I wouldn't)

You guys have a serious shock coming to you one day, that's generally what happens with denial this rampant.

 

[liahos1]

amazing. this site has 350 employees vs Intel's 106k employees and they are being redirected. Vs AMD's leasebacking its main North American and Asia Pacific facilities. IN these instances I like to apply MATH which speaks a very direct language.

AMD has $1bln of net debt on 308mln of expected 2013 EBITDA. 3.25x - that is junk status leverage

Intel has 10bln of NET CASH on 20bln billion of EBITDA. comparing the two is so pathetic and just undermines INTEL troll credibility even further (if thats even possible.)