Intel to lay off up to 16,000 employees?

[shinigamiX]

http://www.tgdaily.com/2006/05/31/intel_to_lay_off_16000/
Note the article says the rumored lay-off is the result of of an extensive self-evaluation rather than financial difficulties. But still, 16,000 isn't exactly a number one can just shrug off.

 

[The_Outlaw]

http://www.tgdaily.com/2006/05/31/intel_to_lay_off_16000/
Note the article says the rumored lay-off is the result of of an extensive self-evaluation rather than financial difficulties. But still, 16,000 isn't exactly a number one can just shrug off.

One must wonder what has made cause for a "self evaluation" and what it says for the company currently.

The Outlaw

 

[iterations]

Sound like their CEO isn't screwing around. Seems like a healthy thing for the company. Get rid of the dead weight. They really overhired over the past couple years. Went from 79,000 to I think now 104,000.

 

[chuckshissle]

It's called MicroManagement, getting more done but using less man power by replacing it with automation and machines. Although Im not with it but it's the future and more people are getting laid off.

 

[clarkbark]

Intel made a statement a week ago saying they would like to cut something like a billion dollars in expenses that they spend every year. I will have to find the acticle. Anyways, this doesnt suprise me Intel is putting a lot of money into changing there stuff from P4 to Core 2 Duo.
It would suck to see so many get fired but many of them will probably get hired by AMD. It seems that everytime Intel fires people AMD hires them.

 

[casewhite]

When you gross margin drops from 59% to 51% you have too much payroll or advertising. . They have four engineering centers and the one that did the real cutting edge work with DEC on the alpha chip has been reduced by key people quitting and going down the road to AMD's new shop in Colorado Springs.. Given recent product quality engineering isn't an area that needs cuts. If he really wants to rationalise expenses stop spending over $50 per chip for advertising. AMD spends less than $5.00. Cutting people is a risky strategy. You need only look at the energy sector to see what rounds of cuts did to the engineering and science ranks. New productive personel don't grow on trees. It takes about 8 years for a college graduate engineer to reach a level that she or he is productive enough that the value of the work represents a decent return on investment. Might start cutting the performance bonuses and stock options for exces. Personnel cuts would be more rational if the CEO had to take apay cut 150% of the percentage of payroll laid off.

 

[Heyyou27]

It's unfortunate for the people losing their jobs, but competition takes no prisoners.

 

[pip_seeker]

In a bold move Intel's ad machine renames conroe... deathroe to attract attention and make people feel sorry for them.

They also contact M.J. for permission to use "Thriller" in an up coming ad campaign. Instead of blue guys, they use mummy's. [Knowing that MJ is short on cash they could get it really cheap] :roll:

 

[k2000k]

Im not pleased about the news thats for sure. For one, a person allready made a good point about advertising. They spend a ton of money on it, and it makes moral and business sense to cut that down first. If they need more advertising then they can always redistribute their funds, but skilled employees are another matter.

 

[K8MAN]

I wonder if the guy who works here will still have a job?

 

[Alpha_Magnum]

There are other reasons that mass layoffs happen. For starters the US economy is falling apart. Notice the changes since 9-11...
1) War, death, starvation and disease.
2) Oil depletion, loss of oil supplies and high energy costs leading to...
3) Falling (crashing) dollar, unemployment, inflation and depression
4) Rising food costs and shortages
5) Rising precious metals costs (gold, silver, platinum, nickel, uranium, etc)
6) Rising insurance costs and labor costs due to inflation.
7) Loss of trust in US Govt and money (as the money is based on oil not gold)
8 ) Falling GNP, GDP and all the rest.

In the past (over a great deal less) the US economy collapsed and fell into what was known as "The Great Depression" As a matter of history all civilizations have collapsed when the reached a given carrying capacity. As energy depletes and costs rise things that depend on the same energy to manufacture or supply become all that much more expensive and add to the inflation. As we have to spend more on energy we loose purchasing power in consumer goods. Paying your mortgage or rent are more important than expensive computers or vacations. Eventually some are faced with problems like choosing between rent and food. Food depends on energy so it climbs in price. Those affected first are the poor then middle class then if that lasts long enough, economic collapse is guaranteed.

I posted in the general section about energy and the ramifications of oil depletion. I explained how all of the alternates in the end rely on fossil fuel in more then one way. We were all raised in a world that has depended on oil and as it starts to deplete our way of life will reverse along the downward curve that is a mirror of the upward curve. So in summery things like computers, toys, pets, restaurants, movies and anything else will slump in a market with climbing energy prices.

PAX

 

[9-inch]

I wonder if the guy who works here will still have a job?

:lol:

 

[9-inch]

http://www.tgdaily.com/2006/05/31/intel_to_lay_off_16000/
Note the article says the rumored lay-off is the result of of an extensive self-evaluation rather than financial difficulties. But still, 16,000 isn't exactly a number one can just shrug off.

One must wonder what has made cause for a "self evaluation" and what it says for the company currently.
The Outlaw

The answer might astound you becuase it only has three letters:

AMD

 

[K8MAN]

There are other reasons that mass layoffs happen. For starters the US economy is falling apart. Notice the changes since 9-11...
1) War, death, starvation and disease.
2) Oil depletion, loss of oil supplies and high energy costs leading to...
3) Falling (crashing) dollar, unemployment, inflation and depression
4) Rising food costs and shortages
5) Rising precious metals costs (gold, silver, platinum, nickel, uranium, etc)
6) Rising insurance costs and labor costs due to inflation.
7) Loss of trust in US Govt and money (as the money is based on oil not gold)
8 ) Falling GNP, GDP and all the rest.

In the past (over a great deal less) the US economy collapsed and fell into what was known as "The Great Depression" As a matter of history all civilizations have collapsed when the reached a given carrying capacity. As energy depletes and costs rise things that depend on the same energy to manufacture or supply become all that much more expensive and add to the inflation. As we have to spend more on energy we loose purchasing power in consumer goods. Paying your mortgage or rent are more important than expensive computers or vacations. Eventually some are faced with problems like choosing between rent and food. Food depends on energy so it climbs in price. Those affected first are the poor then middle class then if that lasts long enough, economic collapse is guaranteed.

I posted in the general section about energy and the ramifications of oil depletion. I explained how all of the alternates in the end rely on fossil fuel in more then one way. We were all raised in a world that has depended on oil and as it starts to deplete our way of life will reverse along the downward curve that is a mirror of the upward curve. So in summery things like computers, toys, pets, restaurants, movies and anything else will slump in a market with climbing energy prices.

PAX

Hard to believe the issues the US is going through. I watched John Stuart last night(THAT MAN SHOULD BE PRESIDENT) and the tax-cut for-the-rich-only was great. Its crappy economy is great for the rest of the world though. The Canadian dollar is almost 1:1 with the US dollar now. Cheap computer parts for all

 

[ethernalite]

It will be interesting to see whether or not these are layoffs or "redeployments", as Intel has done in the past. For those concerned that Intel is going to be cutting their engineering departments, don't. It is very, very rare for a company who depends soley on R&D to maintain competitiveness to lay off engineers, regardless of how poorly they are doing (and Intel isn't doing very badly.) Most likely it will have more to do with marketing, management, production, etc. There are plenty of places to trim the fat without digging into the engineering department.


That said, I know I shouldn't do this because it's not the place, but I can't stand blabbering idiots like Alpha_Magnum. For anyone to actually believe what he writes is riduclous, and I just want to clarify it. (IAAE - I Am An Economist.. or at least majored in it ) First of all, yes, there are some major macroecnomic problems that the US is facing with high government deficits and trade deficits. And there are major economic engines truly competing with the US now - China in particular, as well as some other East Asian nations. That being said.. most of what was said is retarded.

First of all, with the war, yea, it's a pain in the butt, but it did what people wanted. Kickstart the economy. It's well known that deficit spending by the government can transiently help the economy. Either by war, or social spending programs. Second of all, energy prices are a problem, but solutions are being found. As peak oil comes and goes, the free market will find solutions. There may be an economic transistion, but it isn't going to crash the markets. I wish the US government (and other world governments, for that matter) would do more to help end energy woes (there are solutions), but they aren't, and we'll have to deal with that.

As far as the crashing dollar.. good god, what do people want? Democrats want protectionism, and Republicans want free market competition. A weak dollar should be considered the ideal situation. A weak dollar means that foriegn products cost more in US markets, which is technically a form of protectionism. A weak dollar also means that US products are more competitive abroad, which helps the US compete in world markets. Economics 101. Mind you, a weak dollar does indicate that there are macroecnomic woes, but I can assure you that the "people in charge" have no problem with a weak dollar. Why do you think China keeps their currency artifically low by pegging it to the US dollar? It helps their economy.

Rising food costs and food shortages? I don't even know how to respond to that one. You mean in SS-Africa? And rising precious metal costs? Oh god, no! Invesstor speculation means the world is coming to an end. And wait, what? Your 7th point conflicts with point 5.

And finally, the GDP has been growing at a healthy rate for the past 3 years. Technically, only a single quarter in 2001 could even be considered a recession (where the GDP growth was lower than the rate of inflation). Q1 of '06 actually showed amazing growth of 5.3%. So yea, let me tell you, the economy is already in a downward spiral.

Sorry for responding to flamebait, and I feel retarded for doing it, especially on a forum about hardware, but I just can't stand it.

 

[306maxi]

I wonder if the guy who works here will still have a job?

:lol:

Yes. Of course someone being jobless if very funny......

 

[luminaris]

When you gross margin drops from 59% to 51% you have too much payroll or advertising. . They have four engineering centers and the one that did the real cutting edge work with DEC on the alpha chip has been reduced by key people quitting and going down the road to AMD's new shop in Colorado Springs.. Given recent product quality engineering isn't an area that needs cuts. If he really wants to rationalise expenses stop spending over $50 per chip for advertising. AMD spends less than $5.00. Cutting people is a risky strategy. You need only look at the energy sector to see what rounds of cuts did to the engineering and science ranks. New productive personel don't grow on trees. It takes about 8 years for a college graduate engineer to reach a level that she or he is productive enough that the value of the work represents a decent return on investment. Might start cutting the performance bonuses and stock options for exces. Personnel cuts would be more rational if the CEO had to take apay cut 150% of the percentage of payroll laid off.

Very well said. It's typical for any company to allocate a budget for advertising. Intel has alot of capital so they can really get their name out there. Especially to the average people that know nothing about the makings or workings of a machine.

Most or all companies these days are figuring out that less can still be productive as long as key factors are in place. Intel just happens to be one of them so, this article is of no surprise to me.

 

[jkflipflop98]

We showed Mr. Otellini conroe, and his first question was "why did this take 5 years?"

A: We're too big to stop on a dime and change direction quickly, sir.

This is his answer to that problem.

Further, this cut is to be made primarily through attrition. Meaning that when someone retires or whatever, thier spot will simply go empty. small layoffs will only occur in smaller companies that are intel owned, not the main entity itself.

 

[luminaris]

We showed Mr. Otellini conroe, and his first question was "why did this take 5 years?"

A: We're too big to stop on a dime and change direction quickly, sir.

This is his answer to that problem.

Exactly, you can't get blood from a turnip and you certainly can't design a whole new platform overnight. The only reason AMD has the superior technology today is because they have refined a very good architecture and they've had the time to do it. Intels netburst was bad from the start and yes, they did refine it and made it alot better by the time presler came to town but, it was too late and they knew they needed a new platform.

 

[Action_Man]

Quick back to work before he fires you for surfing the net.

 

[306maxi]

We showed Mr. Otellini conroe, and his first question was "why did this take 5 years?"

A: We're too big to stop on a dime and change direction quickly, sir.

This is his answer to that problem.

Exactly, you can't get blood from a turnip and you certainly can't design a whole new platform overnight. The only reason AMD has the superior technology today is because they have refined a very good architecture and they've had the time to do it. Intels netburst was bad from the start and yes, they did refine it and made it alot better by the time presler came to town but, it was too late and they knew they needed a new platform.

Now all that remains is to see whether AMD have been spending too much time refining an already good architecture and not keeping an eye on the future or if they've managed to balance both aspects out...... only time will tell. Netburst bad from start? I seem to remember the Northwood processors were faster and cooler than their AMD competition at the time. Netburst is not just Preshott you know.....

 

[clue69less]

http://www.tgdaily.com/2006/05/31/intel_to_lay_off_16000/
Note the article says the rumored lay-off is the result of of an extensive self-evaluation rather than financial difficulties. But still, 16,000 isn't exactly a number one can just shrug off.

I wonder what the average employee age will be after this move?

 

[Alpha_Magnum]

I think you need to read my post again. The main reason is that I said this first, "There are other reasons that mass layoffs happen." I do however intend to imply that in fact economics relies on infinite energy. If energy should deplete economic principals fail and 'thermodynamic laws' spin everything down.

That said, I know I shouldn't do this because it's not the place, but I can't stand blabbering idiots like Alpha_Magnum. For anyone to actually believe what he writes is riduclous, and I just want to clarify it. (IAAE - I Am An Economist.. or at least majored in it ) First of all, yes, there are some major macroecnomic problems that the US is facing with high government deficits and trade deficits. And there are major economic engines truly competing with the US now - China in particular, as well as some other East Asian nations. That being said.. most of what was said is retarded.

What I said could be one or more of several things but not retarded. Retardation is a physical health problem or condition. The things I said can be true, false, accurate, inaccurate, facts, fiction, incomplete and/or deceptive. I'm glad you mentioned deficits since it is important to remember that the current US leadership has done two remarkable things that have not been done before in the US. First they eliminated the $230 billion surplus from the Clinton years. This came in the form of checks paid to tax payers. Secondly they rang up a $309,386,857,610.12 trade deficit and a $8,347,725,775,211.00 national debt. The amazing thing is that on May 27th a bill was signed that increases the Debt limit to a new high of $7.4 Trillion dollars. Your families’ share of that debt is about $133,000.00

First of all, with the war, yea, it's a pain in the butt, but it did what people wanted. Kickstart the economy. It's well known that deficit spending by the government can transiently help the economy. Either by war, or social spending programs. Second of all, energy prices are a problem, but solutions are being found. As peak oil comes and goes, the free market will find solutions. There may be an economic transistion, but it isn't going to crash the markets. I wish the US government (and other world governments, for that matter) would do more to help end energy woes (there are solutions), but they aren't, and we'll have to deal with that.

Here I thought the reason for the war was to prevent Saddam from using nukes and other WMD on the US? I also thought the reason for the war was to get Bin laden? I didn't know that it was to kick start the US economy. So, on one hand you claim that solutions are being found to the energy problem but on the other say the war's purpose is to kick start the US economy. At the time of 9-11 gas was about $1.18 per gallon so why the need for the kick start?

As far as the crashing dollar.. good god, what do people want? Democrats want protectionism, and Republicans want free market competition. A weak dollar should be considered the ideal situation. A weak dollar means that foriegn products cost more in US markets, which is technically a form of protectionism. A weak dollar also means that US products are more competitive abroad, which helps the US compete in world markets. Economics 101. Mind you, a weak dollar does indicate that there are macroecnomic woes, but I can assure you that the "people in charge" have no problem with a weak dollar. Why do you think China keeps their currency artifically low by pegging it to the US dollar? It helps their economy.

The dollar is based on energy or work done. The present dollar is known as 'Fiat Currency' since the US is a net energy importer and is a 'service oriented economy'. We simply print more money and devalue it more in the process. The countries that supply the oil are moving to the Euro and mixed currencies. Most of our national debt and trade debt is held by China who is about to switch to the Euro too. So now to get our energy imports we will have to buy Euros or trade food (top soil).

Rising food costs and food shortages? I don't even know how to respond to that one. You mean in SS-Africa? And rising precious metal costs? Oh god, no! Invesstor speculation means the world is coming to an end. And wait, what? Your 7th point conflicts with point 5.

Gold is trading at $651.80 and platinum is trading at $1298.00 and speculators predict $1000.00 gold soon. This says quite a bit. One point is mining operations are energy intensive. As oil prices rise, so do all other costs. Since oil supplies are falling at a depletion rate of 8% per year the price of everything will rise too. Since the US Dollar is falling and inflation is rising, the two possibilities are recession and then depression. Food is in short supply too and has many factors making this so. As oil and natural gas costs rise fertilizer costs have increased dramatically. These costs have no ceiling since energy has peaked. Water and irrigation are huge issues too since farmable land in the US is declining too. I can go on and on here though is summery water must be pumped and that cost is rising. Nixon eliminated the Gold & Silver backed notes and moved us to petro dollars so since we are a net energy importer now (60%) faith in the dollar has dropped (OPEC moving to Euro and gold).

And finally, the GDP has been growing at a healthy rate for the past 3 years. Technically, only a single quarter in 2001 could even be considered a recession (where the GDP growth was lower than the rate of inflation). Q1 of '06 actually showed amazing growth of 5.3%. So yea, let me tell you, the economy is already in a downward spiral.

It sure is! Many large corporations are announcing lay-offs. Most social programs are cash starved. All growth numbers are fudged. One way to tell is through unemployment. In most states unemployment terms have been cut. The method in my state is that an individual who runs out of benefits is mailed a questionnaire asking, "Tell us how you found your job!" In other words those that do not find a job are cleverly removed from the system or from the total unemployed population. Due to fuel costs trucking companies are all laying off. Since most of the large corporations have gone global said growth is artificially reported. A given corporation can grow since it makes products abroad and reports capital gains in the US management (importing w/out importing).

Sorry for responding to flamebait, and I feel retarded for doing it, especially on a forum about hardware, but I just can't stand it.

You will note that in my opinion you may understand money but you do not understand energy or what peak energy is. I do realize that you will over time start to understand though the denial you’re in creates anger.

 

[DavidC1]

Intels netburst was bad from the start and yes, they did refine it and made it alot better by the time presler came to town but, it was too late and they knew they needed a new platform.

It's more correct to say architecture since platform is generally referred as mostly everything in computers, generally CPU, chipset and interrelated components.

No, it was best at the days of the Northwood. The start of the peak of the architecture started and ended with Northwood. Presler enhances the crappier Prescott.

 

[306maxi]

We showed Mr. Otellini conroe, and his first question was "why did this take 5 years?"

A: We're too big to stop on a dime and change direction quickly, sir.

This is his answer to that problem.

Exactly, you can't get blood from a turnip and you certainly can't design a whole new platform overnight. The only reason AMD has the superior technology today is because they have refined a very good architecture and they've had the time to do it. Intels netburst was bad from the start and yes, they did refine it and made it alot better by the time presler came to town but, it was too late and they knew they needed a new platform.

You just summarized AMD vs Intel's last 3 years in a concise paragraph ... it was bad decision making from the word go.

But is it not true that once you're onto a bad thing in the processor industry, you're locked in for about that period of time? I mean when Prescott was born which would have been 3-4+ years ago they may have realised it was going to be a flop but simply couldn't back out and keep on going with Northwood. Just like if the Core architecture is a flop which of course seems unlikely, Intel are locked in for 2-3 years. I don't think AMD could punch out a whole new architecture quicker than Intel could.