My manager said they bill about $150k per employee for budgeting. This translates to about $3B/150k = approx 20,000 jobs.
There arent 20k people in SMG. Maybe 5-8k in SMG.
So there will be cuts across all groups. This looks bad.
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So R&D is safe, eh? What’s the last significant thing R&D came up with, or for that matter any other design center of excellence? Many good evolutionary things have emerged for sure, but the last true revolutionary game changer was core micro architecture out of Israel. That was, what, 2007? Improvements need to occur everywhere.
I can't help but be amused by the engineers here who think (misplaced hope really) that engineering groups won't have large budget reductions leading to large headcount reductions year over year. Yes, sales, finance, HR, legal, IT will see larger reductions as a % of the number of employees in those departments, but there is no way to reduce spending by $3 billion next year and up to $10 billion a few years later without large numbers of engineering layoffs. The % will be smaller, but in absolute numbers the number of employees will be much larger.
They need to look at any group that does not contribute to bottom line, like SSG - Developer Relations. Too many layers of high-level managers. Axe them and nothing will change - they contribute absolutely nothing. Just a big old clique.
$150k per employee is just average. There's facilities in India, Penang, Mexico, etc that are much lower than US or Europe. So $150k is an average.
Feel free to up it to $200k if it helps, but 150k is probably closer to the right number.
That said, there may be more cuts in USA and Europe.
One employee cost for employers is much more than 150K. It is not just salary or stock. If you count insurance, benefits, At least 200K for one Intel employee. That'll be less than 15000. If you save on some other way. 10000 is possible.
Today's HC is 130K. 110K ($3B, -20K) is Intel circa 2018-19. 65K ($10B, -65K) is Intel circa late 1990-s. Take your pick.
I work in R & D. So far no cuts. Our project is a very important complicated piece to the end of line. Thermal compression bonding.
They’re not going to cut those numbers from SMG, Someone has to get customers to not buy better AMD chips. And there’s too many of them covering big accounts. Though their salaries will be likely be much more then 150k
Average US engineer cost has ballooned to $350 including health insurance and other benefits. Much less engineers will be affected.
Then $10B would be 60-70K? That's half the current size. Wow!
They're silently looking to reduce R&D too, dunno how many employees are there
Will echo other comment. Very strong math
Excellent math