"Intel told investors Thursday it will put a strict lid on spending "

http://www.oregonlive.com/silicon-forest/index.ssf/2017/04/intel_first-quarter_results_1.html

"Intel told investors Thursday it will put a strict lid on spending over the next three years to maintain profits as the chipmaker transitions away from its reliance on the fading PC market.

...On Thursday, Intel said it expects to get overall corporate spending down to 30 percent of revenue by 2020....

Spending was 36 percent of revenue in the first quarter, so the cuts Intel outlined Thursday suggest the company will continue making severe changes to its operations."

So - assuming 6% revenue growth, headcount vs other spend relatively similar means flat spending for 3 years. So either no raises, or match raises with equal percentage of cuts.

Or more low cost geo.

If other expenses can't be reduced -- more cuts.

If revenue growth below 6% -- blood bath.

Anyone see way to reduce costs significantly other than headcount? (I don't think this 36% to 30% spend includes capital...)?

I don't see 6% revenue growth. Even if no share loss (ha!) ASP pressure on desktop and servers will be mindblowing - almost Zen like.... Intel historically always craters price (or makes "legal" marketing payments) to hold share...

So expect at least 2% cut this year. About 2000 people...

Not a matter of if, but when. Listen to what they said...

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Will I still be able to use the female restroom? Or does the cuts go that deep?

@zes- its working so well in California.🤣🤣🤣🤣🤣

@dko, international flights are business class since 2 years ago. It was meant to reduce travelling but instead of reduced travelling, favored groups like MIT and IT travel a lot more on business class, too much budget! While other groups like PEG and CCG are being squeezed!

True @ili. Doesn't work for states either. Look at Kansas.

"Saving our way to prosperity". May work for individuals but not necessarily for corporations. Reducing costs is usually part of a death spiral.

From the 1Q17 CFO discussion .pdf: "The total number of employees at the end of the first quarter was 107K, up from the fourth quarter and down from approximately 112K in the first quarter 2016."

They can't even get the reduction correct. 5K from a promised 12K. Intel failed the major restructuring target that hurt them in 2016. It's just mindblowing how inept these guys are but that they still survive.

I never got business class. Is that really allowed now?

I have a watched so many spend watches and have never once seen them really do much for the long run?

What is the purpose at a company like Intel? You save enough to spend a few billion on another missed big thing?

Save yourself out of the fact 14nm is not cost effective for coffelake die size?

Save to pay fruit and sodas or maybe cut on janitor and see and smell urine everywhere.

Intel profits are billions, you really save your way to a revival?

No you need smart executives who identify trends, smart enough to cut wasteful projects etc.

All this means is BK is even more desperate as his spending on acquisitions are panning out and 10nm costs are looming.

Bigger ACTs are coming, duh!

No more free coffee and fruit.

Install pay-to-use bathroom stalls with nfc payment.

Add metered parking

no more bonuses

For every stupid action or bad result, make those responsible get 5% deduction in next pay cycle.

There, that should get Intel profitable again until they get some innovative tech out the door.

Agreed with @piy on the business class travelling. Favored groups like DO's MIT group are spending like crazy. Pretty much every fortnight some big groups of folks are flying somewhere international. And IT can still hold their big meeting with several hundred folks at expensive hotels like Marriott SC with IT staff flying in from everywhere around the world on business class! Madness, just those business class flight tickets alone would have saved a lot of $! Other groups like CCG and PEG may be clamped down on spending, but groups like MIT and IT are spending like crazy, have been going on for a few years!

So everyone still flying business class, lots of spending there. If that is still happening then says it says a lot that they are willing to spend 3-5k instead of 1k

If there's going to be any major head reduction it may be total mess. HR's new HCMS has really bad UI and questionable data(it was designed for a company a big organization like Intel with many processes), causing low moral and frustration. This is not too far from an exaggeration, but sometimes it takes month to do

something that once took a day.

If these major cuts happen I'm expecting some chaos and litigation.

Thread regarding Intel Corp. layoffs

"Intel told investors Thursday it will put a strict lid on spending "

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