Thread regarding Intel Corp. layoffs

Whether to use debt or equity is one question as interest can offset taxes. But what they spent the $25bn on is another. Altera was drastically overpriced.

Intel's debt is not that bad. They have $20 billion in operating cash flow. Increasing the leverage was a deliberate decision to adjust the "capital structure." There is an optimal amount of debt that maximizes shareholder value. Debt has a lower cost of capital than equity on an after-tax basis. You don't want too little debt or too much.

And now we see the real reason Intel wants us higher pay older employees to quit, get fired or die. 25 billion in debt. I hope we stop blowing money on all those share buybacks for a while, those were costing us between $40,000 and $100,000 PER EMPLOYEE each year.

Debt is cheap, near zero interest. However if we borrow to fund a losing money business, then it is a bad move.

Debt is piling up, laid a bunch of talent off and paying them a year or more of salary and most going to go to the competition and collect what is double pay work to kill intel and intel still paying them.

The debt, Probably came from that dumbass bk's ideas-playing with little toy helicopters and hiring that haboo!

"A position of strength!". Really? The words strength and BK don't really hold much credibility.

They are doing a "levitation" act.

They used most of it to buy back stock so it doesn't crash.

The second reason was to finance Altera.

They keep borrowing from the future to finance buybacks in the hope that "growth" will bail them out.

Good luck with that.

Commodity memory and low-margin low-volume IoT ain't cutting it.

OMG look at that debt, where did it come from and what did they get for it?