last week Murthy presented directly to the board a plan to bring Intel expenses under control.
presenting different scenarios that may materialize over the next 2years Murthy recommended to the board that headcount be reduced by 30,000 to 85,000.
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Murthy now understands what 1274 is going to cost and 40k is indeed likely!
To compete in low margin IoT, modems, memory and such will require intelnto have about 50-60k employees to maintain the same margins they have now. Or maybe BL can let the stock slide to about 22 bucks.
So I predict to save his sorry A$$ he will layoff 20K in 2017 and another 25k in 2018 as he continues to strike out on strategy for recovery
Who is Murray @bka? Do you mean Murthy or someone else?
(1) 30000 or (2) 20000 + Murray, BK, and selected other staff (including useless middle managers and others who are inept yet protected) that lack a track record of performance. Further cuts will be painful, but if they are unavoidable I'd choose option #2.
Just ensure he's on the list!!!! Seems to be doing a Qualcomm repeat.
Let's be honest, the past two decades intel has maintained its margins and competitive advantage by scaling to the next node on a like clock tick tock cadence. Each time in the past two decades the scaling and ramp at double the density allowed intel to keep their margins and control costs down and expand output almost free.
Now what happened at 14nm, it was late. And what is happening at 10nm? The billions for the factory are already spent yet intel is doing a tick tock tick tock, now FOUR generations at 14nm. The second tick Kaby drove the first 20k layoff. If intel has to do Coffee and delays to the second tock another 25-30 K have to go to absorb the cost of staying on 14nm while s---ing the 10nm cost with little to no output.
Simple math and tick tock tick tock logic!
Have to give the guy credit for actually telling the unfortunate truth. If the foolish employees don't act on this message, too bad for them.
Source?
Only 30k 🤔 Murthy must be believing Sohails dream ramp 😂