Frankly, we cannot sustan to hand out dividends, lose sales, drop profits, etc. Something's got to give... There will be massive layoffs, 5000 to 8000 in my estimate. PG will be asked to leave, he'll gently land (golden parachute) in the paradise!
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You've got this armchair quarterback.
As discussed many times around here Intel is very much like a large government agency now. The waste and inefficiencies are staggering. Insane layers upon layers of management. More VP's than some companies have employees. Managers hiring their friends or just doing wasteful empire building. As with large government agencies the parasites are entrenched and almost impossible to root out. This is probably why PG decided to trim costs by doing across the board pay cuts instead of trying figure out who and how to fire the parasites. The company, in it's current sick state, is simply not competitive and cannot survive without government support.
Intel revenue 63B employees 131K
TSMC revenue 75B employees 65K
AMD revenue 23B employees 15K
NVD revenue 27B employees 23K
Add TSMC, AMD and Nvidia HC together still smaller than intel and make so much more value and miss efficiencies of combining and forget all other stuff TSMC does.
And to see really how inefficient is Intels business model TSMCs biggest customer isn’t even considered here as well as other customers like MediaTek and Qualcomm who also do many others that make a ton of chips more than Intel.
Boy did they miss the Foundry pivot a decade ago when they were ahead and turn down Apple. What was the leadership thinking when they canceled and put barriers to all the Foundry efforts.
How inefficient is Intel? Let’s not forget they are going into a huge recession while their competitors are bigger and more well funded and ahead by ever financial, technical and business benchmark.
Intel needs to cut costs dramatically and improve efficiency. It is doubtful that the company could remove 50K employees overnight and still function. It will take years to improve those efficiencies. Intel management and employees haven't comprehended this yet so the bottom is still in the future. There will be a lot more pain before things start to improve. A good start for Intel would be to change the communications strategy of bravado to humble. You f'd up so admit it and fix it
Just take a look at lean startups like Ampere and SiFive to see what can be achieved with an entire company the size of a single Intel team. Consider that what AMD is accomplishing with about 10K people for both CPU and GPU before adding Xilinx. There's probably less that 5% of people at Intel who are actually producing all the work. The other 95% are leeches who are just sucking the company dry. Everyone knows this both within and outside Intel but are afraid to say it.
Even in good times Intel's sweet spot was at ~100K headcount (-30K from current), and these are not good times.
Lol at 8K. If Intel’s revenue per employee wants to be anywhere near industry peers you’re looking at Twitter style decimation.
Triple that, more than likely.