The official thread. Let's consolidate our questions and thoughts in this mega-thread. I wish if the admins can pin it, but let's see how it goes...
24 replies (most recent on top)
X86 volume falling and loading down mean fixed cost has to go down which means more pressure on TMG for efficiency and that is layoffs baby!
10nm ramp is crazy expensive which means eye popping cost start to be realized and can't be hidden any more and that means more layoffs of people everywhere!
All the purchases and divisions not bringing in revenue will be chopped and those that are important will be forced to do more with less to keep wallstreet pacified.
Net result all groups will get more cuts and groups like wearable are just one of many of BKs affairs that will be dumped like all of his ex wives
15-20k in 2017
20-25K I. 2018
2018 or 2019 TMG will be shopped around and the product group will be split out, same script at IBM and AMD
Do you have a lifeboat?
They were warned @3htz, so it shouldn't come as a surprise to them.
Time to tap the VSPers that stayed on the shoulder and simply say, "uh, gotta minute?".
Phase 1 was the ISP/VP/ERPs announced on 4/24.... then they said something about sites and projects, etc... Those are what is going through (or at least INTO) 2017. They didn't meet the 11% after the ISP/VSP/ERPs and needed to make more cuts to get to their 11% number.
-nie
Shortly after 4/24/16 once the ball got rolling. It was explained in various venues at Intel.
-nie
BK said that the 11%/12K reductions would go INTO 2017.
when was this?
They'll never learn the lessons that were taught to us by the Titanic. Intel will sink to Davey Jones's Locker because they could not keep up with technology progress. This is mostly due to awful management decisions.
Time in grade criteria will more likely impact older workers, so it is another way to get rid of them without calling it age based layoff.
Time in grade will be important criteria for next round. If your time in grade is higher than median, then you are out unless you have a very recent EE rating.
Company wide layoff using something like one L4 or L5 is the most stupid and gutless way to do layoff.
Follow that by a top heavy cut is also a rinse and repeat of gutless and stupid.
When you company is struggling with core business floundering, next generation products and manufacturing uncompelling and broken/late then unilateral cross the board cuts achieve nothing.
Ops I am wrong, they tear apart the moral and motivation of those remain and validate to the internal people management has no clue.
Externally they are already getting wind that nothing has change and whe ACT2 and ACT3 appear all will be revealed.
The tipping point has been past and nothing at this point beyond a complete overhaul of management and people with huge structural changes will Intel survive.
which means most of VP and above, including BK, will be out. He will not do that, will be certain exception make sure he do not forced himself out, like only applies to grade 9 or below.
BK should just implement a Rule of 65 for layoffs. If your age + years of service reaches 65, you are forced out. No exceptions.
MCM want to wait to give impression that they are giving layoffs a lot of thought. They will do the usual S4/5 cuts, but also cut folks in same pay grade for 7+ years. This will help to cut the older folks once again. It is much more difficult to move up a pay grade once you get to grade 7 and above.
Earlier the better. Why were MCM wasting a quarter and waiting till 2017 ?!!?!
It is good to know that management grew some balls to not wait for the needful action until next year.
If company has cancer,
Would you wait 😐😑😔
- until cancer spreads to rest of the company -
before cutting off the affected part ??
Reports from AZ are ugly, might not need to wait until next year for more layoffs.
https://www.thelayoff.com/t/KjvPUla
https://www.thelayoff.com/t/KjXGRgG
There will not be ACT+
There may be layoffs , and maybe more groups closure, but no more company wide layoff.
I know about several groups which are recruiting now, and not only RCGs.
It will be about summer, they will need to disclose the full mess and restate finances at that point in 2017 and ACT2 will commence
Layoff announcements typically done around quarterly earnings releases..
For sure anyone who had received a VSP this past year AND has not cut a deal with their management to keep their job, will be gone.
Remember the restructure cost estimation raised from 1.4B-->2.3B in Q3 financial report, I see that as another 7K, on top of 12K announced, to get rid of by Q1'2017. Anything happened after Q1'2017 will be counted as ACT2.
I'm not the OP but it's not a prediction. BK said that the 11%/12K reductions would go INTO 2017. They aren't over. It's always been the plan. They are going in stages starting with 4/24/16 and into 2017.
ACT2 is a certainty and here is why
1) X86 continues to decline and 2017 is another 10% decline at a minimum. Lower volume on mature 14nm means much fewer wafer starts and lower utilization and thus higher costs.
2) Big costs for 10nm ramp and all the products with little incremental output and volume
3) IoT, memory, Foundry and modems are all about volume and costs of which intel has none of the them. So margin busting for all three new pushes.
ACT1 was a charade as the people that were cut was random and not related to structural changes that was and still required big time.
ACT2 will be require to enable the major structural changes and wholesale amputation of useless and rotting limbs that is still required.
My prediction is 20k next year and BK is gone in 2018 as his incompetence is fully exposed!
No VSPs anymore. Only ISP with lower package than last year. Same S4/5 criteria plus 5+ years in same pay grade.
Has Intel announced layoffs next year or is this thread another one of your predictions?