Thread regarding Intel Corp. layoffs

If y’all are gonna post random numbers, at least provide a source. Otherwise, we can just assume you pulled that number out of your a-s

We are at RA and pretty much told the exact same thing at as the ACM.. our meeting Monday could've been an email

TD cut 30% ? source? sounds very high for delivering 18A

@1tga Having worked in DCAI, I can say it's not like other PnL orgs. I suspect they don't want to open VSP is the fear of losing more engineering HC, which they've had a hard time keeping (but not that those engineers are any good, product quality is low, PRQs pushing, etc). DCAI under Sandra also didn't open VSP back in late 2022 or in early 2023 when CPM actions were taking place. They went the route of picking who they wanted to leave (but the obviously didn't pick themselves).

@@1tju If Greg's target for next year is -25% spending from 2024, and only has to cut -15% in HC... how obese is SATG? It will be over two years of "austerity" (late 2022/23/24) before 2025, and they still have an extra 10% of total non-HC spending to give up?

The twisted math of Intel Finance is that all over-head costs are re-distributed back to BUs mostly by HC numbers. So all those finance monkeys, SMG/Marketing, HR, Corp Services, IT, etc costs are spread over all HC. So the more HC they cut, the less the BU has to pay for those services. And yes friends, those costs are significant. Back in the day, it's prob equiv to 33%-40%+ of payroll spending... and there's zero ability to influence/change that number, even if you aren't using much of their "services".

IMO, leaders try to always say they are trying to "save" jobs... but the reality is, the only job they really care about is their own, and they will say or do whatever it takes to keep their job.

SATG - Greg said 25% overall budget cut for 2025. He is trying to minimize % of HC cut, so maybe it does end up not far from 15%.

As someone eligible for enhanced retirement, I fear that this will be the only chance to leave with a package this attractive. If financials do not improve and/or a competitor or holding company buy all or some of Intel, we could see huge head cuts with much smaller severance packages.

Like @jaba mentioned, DCAI already had a round of CPM available last month and cut around 4%/800 folks. I don't recall Justin and friends say what the overall goal for DCAI was, since this was before this 15% cut company wide, but he explicitly said this am that as an org, a VSP isn't needed so they won't be opening it again. It isn't clear whether that means that DCAI is only cutting 4% or the you expect the remaining 11%/2000 heads to come from retirement and ISP.

TD will cut 30%

CS was told they wouldn't know for a couple weeks but we just had voluntary 1.5y ago and they urged us not to take it and then cut everything right after and gave 0% raises so a lot of people are chomping at the bit to take the buyout

In DCAI only ~800 took VSP in the July 31st round. With no CPM, ERP and ISP should cut around 2000 heads at a minimum. That would bring the 15% range reduction.

HR should probably be even more than 26% given we are not hiring anytime soon and retiring for most of those positions should not be a problem.

What percentage ATTD?

@1hyq - yep. Overall 15K. I meant per BU HC count. That count may vary depending if they want to save 1B or 2B.

HR 26%

@ 1rjb I think the HC cuts they have in mind is 15,000. lol.

But yeah, you are prob right CA will take a disproportionate of HC cuts (prob mostly SC and FM). With the elimination of the shuttle, the long term sustainability of the FM site is prob in jeopardy. I can't think of one major, profitable, business unit still based out of FM. They can keep the IT servers there, but that's just one building. They used to have old ASMO SMG based out of there, but much of those HC have offshored to CR, similar to IT, CCG is a shell of what it used to be (DT, chipsets, channel have been dispersed... mobile has always been mostly SC), VCG ha ha, DCAI is miniscule, all the memory stuff has either been spun off or sold off, there's bits and pieces of test/validation, but with HC cuts, that work can be consolidated to another site.

The cuts are % budget based. So depending on how much $ each BU needs to cut, the HC could vary. So it could be 50 or 200 in a BU.
Rest assured, i think they have a HC number in mind even if they say it's budget based.
Definitely high cost regions like California and NYC will get the most cuts to save $ faster.

Altera 35%

For all those who think a -35% is "spending", and HC would be less, I would point out that Intel has been on an austerity kick for over 18 months now, so all the low hanging spending fruit has been harvested long ago. In reality, sad to say, that to get to $10B in savings, most of the cuts will come from US and Western EMEA, and likely mostly from HC from higher cost GEOs/regions (hence the VSP, and early retirement packages). At eqiv grade level, 1 US HC is prob worth... 2-4 HC in Costa Rica, or other lower cost GEO. HC spending is prob the largest knob left they can still turn to achieve their goals.

@1ivx You would think so, but SMG somehow found the budget for an all-inclusive cruise not long ago. Plus, CWs might be included in "budget" cuts.

TD will know in early September when Ann will give another update.

Yes but all of the things that could be cut that were not headcount have been cut over the last couple of years haven’t they?

Wow, an actual informative thread here that isn't trolling or blaming the problems on DEI? Who knew that was possible?

STTD likely will not know until Sept

CCG - 20% budget reduction, including layoffs + other austerity measures

SATG - 25%

BAP 100%

(bananas, apples, and pears)

Anyone have numbers on the MFG impact?

IFS - 15%

Fmsc 15%

35% cost … not headcount only in SMG … actually all groups have a $ target not people

My take was NOT a 35% hc reduction but a total budget reduction of 35% coming from all expenditures. One of which is hc, but not only hc.

IT - up to 25%