Thread regarding Intel Corp. layoffs

I feel instead of layoffs they will increase attrition

According to proxy 2023 headcount has decreased 6-7k between Dec to April and intel charged 1.2B for the headcount of reduction. Now there is no cash to pay for another round, so the cheapest option is to increase attrition.

How? 1) Inflation peaked at close to ~10%, meaning, in the next cycle, if you get 10% raise, will have the same purchase power as early 2022. to have 10%+ increase for all employees, intel need huge increase in revenue - Also remember in 8 months heading to 2024, intel needs to reduce cost by average ~800M$ to achieve 8-10B annually. 2) So far they have not provided info about 'reward' for those who stay, and ambiguity will result people to leave if another opportunity arrives. 3) Long term cash for G 3 & 5 as I hear many people prefer RSU. 4) No QPB bonus at least until Q3 2023.

My analysis based on published articles by experts. Remember if economy improves, there is a chance for a V shape recovery.

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Post ID: @OP+1mciVPEr

6 replies (most recent on top)

with attrition the company doesn't get to pick who to get rid of.
it's easier for good people to get new jobs elsewhere.
often the poorer performers are stuck because it's harder for them to get a new job.
so with the attrition model you could end up with a bunch of poor preforming
teams.
with the layoff model they can get rid of who they want.

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Post ID: @5uva+1mciVPEr

Every process node is a m00nsh0t. There was an article in Forbes about how Intel "bet the farm" every 3 years. Of course, this was in 2017? They were already patting themselves on the back for Ice Lake or Cannon Lake. So if you are just expecting to punch a time card and not risk anything then go work at the DMV.

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Post ID: @2lzp+1mciVPEr

The situation is dire. I mean wth do you do when you are supposed to be a cash cow company but instead you are betting on a 'moonshot' strategy that requires infinite cash burn with little hope of success (IFS). Now you got negative cash flow and cost of capital has increased dramatically. This will end quite badly.

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Post ID: @2gpp+1mciVPEr

Attrition takes too long they need action now. Separation packages will just get reduced to the bare minimum. If you have been hanging around waiting to collect a big payout you stayed too long.

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Post ID: @cwf+1mciVPEr

On what page in the proxy do you see that info?

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Post ID: @dla+1mciVPEr

They can sell non core business unit.
historically that's always part of what they do It will reduce opex/head count and inject cash.

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Post ID: @aio+1mciVPEr

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