https://www.semiaccurate.com/2019/11/20/large-layoffs-and-reorg-to-hit-silicon-valley-soon/
17 replies (most recent on top)
From 2016: "The workforce reduction is part of Intel's strategy to focus investment on the high growth areas of the data center, Internet of Things and connectivity. For decades the company has been synonymous with PCs but that market is lagging."
The only problem was that, "High Growth"; for IoT, was speaking to volume, not Profits !
IoT is Atom x10; & every Atom CPU Intel sold, had a $20 bill inside the box, for the loss Intel took selling it to you !
Intels BoDs have been dogshit for their decision to pursue, 'x86 everywhere', when it was obvious to the anyone with a room temperature IQ that x86 wasn't a fit for anything outside of PC/laptop/Server
If I had to pick one id–tic decision over the years, that sunk Intel; That was was it !!!!
and they had that xScale License ....
The 2016 ACT layoff was to save $200 million such that it could be spent on a diversity program to spend more on women. That's how you make competitive chips – NOT!
@128bgu6n-5byi is it really 12,000 this time around?
2016 ACT was a triple whammy for Intel
- They lost experienced high quality talent, many of that caliber people don't apply to Intel jobs any more
- The people they lost went to competition making them stronger as seen with data center competition heating up
- The people they lost from ACT took along others working at intel to join them who were not part of ACT action and Intel would have liked to keep
what's not to like?
As someone who was ACTed upon I gotta say it gets better outside of Intel. I look back on those days like I was in a cult.
When you're a monopoly it makes perfect sense to cut R&D and milk the profits. Unfortunately when a viable competitor comes along you're going to wish you didn't fire 12,000 hard working people who helped to make your products competitive. Instead of having experienced engineers working for you they now work for the competition. This is why you don't want number crunchers running the company.
Strategy was sound in 2016. However, in 2H 2019 data center spend started slowing dramatically and AMD created a competitive product.
But 2016 ACT was to allow growth of DCG and IOT
From 2016: "The workforce reduction is part of Intel's strategy to focus investment on the high growth areas of the data center, Internet of Things and connectivity. For decades the company has been synonymous with PCs but that market is lagging."
CCG = Client Computing Group i.e. retail PC market and other client channels. DCG is Data Center Group.
The article says about 1/3 of DCG will be downsized as confirmed by multiple sources. This will start in Q1. Just passing along info that was requested. Don’t shoot the messenger.
thanks @128bgu6n-aeo I've felt bad about snooping around the paywall, but it's been posted for a few days and everyone that NEEDED needed the info and wasnt a member yet probably already signed up. I always love his misleading article tags while the rumor is still under wraps. @anon, Charlie is a freaking mole. all you need to know is layoffs.
what does DCG stand for?
reorg and layoff in DCG
According to the article the massive layoff and reorg will affect DCG. Let's see how long this post remains before being censored.
Do you have subscriptions? Can you post what the articles says in details please? Or share expected time, divisions effected, source, etc. How much is it trustworthy?
This link is for subscribers only, could someone tell us what it is about?