How to cut 3B yearly and increase to 10B?

AMD 5.6B revenue with 15K employees
Qualcomm 10.9B Revenue with 45K
TSMC 20B revenue with 65K employees

Intel 15.3B revenue with 121K employees

Pat has big fantasies, the cost to us is large and probability of success low to nil.

Build huge new IFS factories in Az, Ohio and Germany. The scale of those if they come to be have to rival TSMC. Look at TSMC revenue and # of employees! No way the fabs can compete!

Look at the design side compared to AMD or Qualcomm, again no way.

Intel for the past 30 years relied on x86 moat / monopoly. NO AMD with x86 and Apple with ARM have destroyed the moat.

It is true 10 billion in yearly cost while keeping revenue at least flat suggest a transformation to a company. Even with subsidies of billions from governments Intel needs to either drastically cut salaries or people. You can’t cut saliva so you need to match revenue / employee.

Pretty simple in 3 years Intel has to be about 80-90K employees be competitive as IDM + IFS.

So we want to be part of the poor 80-90 souls working for Pat’s 170M payday or 30-40K happily off the Titanic

Comment! It's anonymous!

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The revenue per head is a very useful metric. Also consider gross margin. Gross margin falling is where you get a very clear picture of competitive advantage or lack there of. Declining sales and declining gross margin mean you simply cannot afford all of the headcount. I am rooting for you guys but as ASG said, 'hope is not a strategy.

:@hto+1jrFkBVS Intel and begger Pat should get tens of billions of dollars from Goverments to squander as well as plum high margin chips to milk for a few years. Figure 30-40K layoffs amd than another 25-30K as they pull a Kodak like story.

Sad indeed for the legacy of Bob, Gordon, and Andy to end with Pat

Interesting analysis but I think your 80-90K employees estimate is way to high based on the data you provided. By dividing the revenue by the number of employees Intel is far less efficient than any of the competition. At current revenue level Intel would need to reduce the workforce to the 50-55K range to be competitive. For Intel revenue to increase the product portfolio needs be a lot stronger and the foundry business needs to grow exponentially. Neither is likely to happen in the short term. For Intel to operate with such a reduced workforce would require the company to change how it does almost everything. This isn't a strong point for Intel management. Most of the senior managers that have been at Intel for 20-30+ years have done things the same way the entire time that they have been here. The party is over, Intel no longer enjoys a product and process technology lead over the competition. The company also has more relevant competitors than any time in the past. You left NVIDA out of your list and they operation in the same range as TSMC or AMD. Intel needs to reinvent itself from the ground up which, if it happens at all, won't happen overnight. Just from the comments on this site most current Intel employees don't appear to be planning on sticking around for the required renovations if they are being planned at all. It is going to be a difficult journey to regain the lead Intel once enjoyed.

Thread regarding Intel Corp. layoffs

How to cut 3B yearly and increase to 10B?

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