So they got all that money from Uncle Sam’s CHIPS Act only to lay off 10,000 employees and make themselves “lean”. Govt funded unemployment.
Two generations of bad cpu’s and their solution is get rid of the workers so they can keep their bonuses.
MBA brain rot
There’s a dude in wallstreetbets who dumped a $700k inheritance into Intel stocks. lol
Probably just keeping the staff needed to replace all the 13th and 14th gen CPUs.
I really hope they plan on fixing the problems with those generations. 🤞
They aren’t fixing shit since the problem is unfixable
I suppose I should’ve phrased it as, compensating. Seeing as they are still being sold.
Somebody should make a Borat Meme with AMD and Intel “Big Success!”
Done.
Prepping for all those spicy class action lawsuits coming their way.
You’re probably right, the generation 13&14 will be riddled with lawsuits.
I’m rather OOTL with intel. Mind giving me a short summary? What’d they do this time?
Not sure a short summary will cut it.
They had no competition for a long period and ended up with an accountant CEO that caused their R&D to stagnate massively. They had a ton of struggling and failing to deliver all in most areas, and they wombled about releasing CPU generations with ~4% performance uplifts, probably saving a few bucks in the process.
AMD turned back up again with Ryzen and Epyc models that were pretty good and and an impressive pace of improvement ( like ~14% generational uplifts ) that caused them such a fright that they figured out they had to ditch the accountant.
Pat Gelsinger was asked to step up as CEO and fix that mess. They axed some obvious defective folks in their structure and rushed about to release 12th generation products with decent gains by cranking the power levels of the CPUs to absurd levels, this was risky and it kind of looks like they are being bit with it now.
Server CPU sales are way down because they are just plain uncompetitive. They have missed out on the chunk of money they could have got from the AI bubble because they never had a good GPU architecture they could leverage over to use. They have been shutting down unprofitable and troublesome divisions like the Optane storage and NUC divisions to try and save money, but they are in a bad way.
The class actions mentioned elsewhere in the thread are probably coming because the rush to make incremental improvements to 13th generation and 14th generation CPU’s resulted in issues with power levels and other problems that seem to be causing those CPU’s to crash and sometimes fail altogether.
What is it with accountants being chosen as CEO? Like if you were a competent accountant, you should be CFO, and the CEO is someone who knows what the fuck the company sells and how it profits, which I can guarantee you has never been a competent accountant.
It’s a little like the sociopath hospital boards, having more billing staff than doctors and nurses. Making a massive mistake for quick profit and leaving it for the next guy to cleanup lawsuits. A little like robocall centers, okay with fleecing the poor as long as they only have to pay roughly 20% in damages, close shop and create a new call center all over again and rinse and repeat.
In January 2022, Intel announced an initial $20 billion investment that will generate 3,000 jobs,
Not sure why Biden didn’t put any terms and conditions on giving away all this money 💰?
The US and Europe has become acutely aware that too much semi-conductor manufacturing has been outsourced to China and other Asian nations and they’re trying to build some back domestically. So that’s the geopolitical reason for it.
What’s crazy to me is that they are laying off more employees than the total number of full time employees I’ve worked at for most companies.
They are laying off 12% of their work force.
That’s what happens when companies are too fucking big, and intel was essentially a monopoly for a while.
I have interned at AT&T while at University, laying off a 1000 people would be less than 1 % for them.
While Intel has absolutely been losing money on its chipmaking Foundry business as it invests in new factories and extreme ultraviolet (EUV) lithography, to the tune of $7 billion in operating losses in 2023 and another $2.8 billion this quarter, the company’s products themselves aren’t unprofitable.
So what I’m getting here is that the CEO and or the board decided to invest in something that is losing a ton of money and so now 15% or more of the people who have been working diligently to actually make the company money are going to pay for it by losing their job.
That’s definitely a huge issue but they’re going to have a hell of a time on the overcooked processors on the market right now. They’ve sold a hell of a lot of defective product over the past couple of years. Consumers and third parties are going to come after them for refunds. Consumer confidence is way down. They’re going to have a hell of a time trying to sell 15th gen to people. Everyone I know who knows what in the hell is going on is going to AMD.
Consumer confidence is way down. They’re going to have a hell of a time trying to sell 15th gen to people. Everyone I know who knows what in the hell is going on is going to AMD.
I’ve been in the industry since back when AMD actually was making the processors for Intel. And people have been saying this exact thing every time there’s a fluctuation in the processor market. Yet Intel still basically owns the market anyway.
The failure in Intel isn’t their processors, it’s their management.
So what I’m getting here is that the CEO and or the board decided to invest in something that is losing a ton of money
Intel has an enormous technical debt that they’re finally struggling to pay back after they hit a brick wall with their 7nm Titanium chipset.
It isn’t that this is wasteful spending so much as it is big upfront costs for future productive development.
That said, the fact that this work has to be government subsidized in order to be done raises the question of why this business is private at all.
I think it’s even more absurd than that. The CEO/board decided to make a long-term investment which wasn’t going to pay off for several years. To what should be the surprise of no one, that meant short term losses.
Framing an investment in a massive amount of new infrastructure as a loss because it didn’t immediately start operating in the black is beyond unreasonable, but that’s the demand when all that matters is quarterly gains and year-over-year growth.
