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[StereoVsn]

Yes, clear out all those non-essential people in R&D.

Intel is repeating the pattern that got them in trouble. Toast.

They are just going to follow all Boeing’s amazing ideas from the early 2000s to a few years ago. It’s foolproof I tell ya, foolproof!

 

[DonkeyPunchJr]

I think they should return to Netburst and give us that 10GHz Pentium 4 we were promised.

 

[ResilientBanana]

Everyone acting like they don’t have 95,000 employees still.

 

[BlackTron]

They are just going to follow all Boeing’s amazing ideas from the early 2000s to a few years ago. It’s foolproof I tell ya, foolproof!

I didn't realize just how many times and how badly Intel had fucked up prior to this. They're losing it on quality and the reaction is to just reign in costs.

They probably have a lot of unneeded employees but I doubt R&D is the department very many are located. In fact sounds like they need to fire a ton of unneeded people and beef up R&D badly.

Since Intel chips perform so many important roles, it's not even morally much better than badly making planes. If not part of some infrastructure, maybe the chip goes in a plane...or my car lol

 

[StereoVsn]

I didn't realize just how many times and how badly Intel had fucked up prior to this. They're losing it on quality and the reaction is to just reign in costs.

They probably have a lot of unneeded employees but I doubt R&D is the department very many are located. In fact sounds like they need to fire a ton of unneeded people and beef up R&D badly.

Since Intel chips perform so many important roles, it's not even morally much better than badly making planes. If not part of some infrastructure, maybe the chip goes in a plane...or my car lol

Yep, these knee jerk reaction to cut manufacture capital expenses and R&D will bite them in the ass even worse in a few years.

 

[cash_longfellow]

“non-essential work” Ohhh, you mean the bums that have been milking the remote worker clock since Covid, and not doing a damn thing to contribute?!? Good riddance, now maybe we can get partially back to where we were in the gaming industry now

 

[StreetsofBeige]

they just had 15,000 employees that were doing non-essential work? i mean fuck. no wonder they were losing so much money.

if i was an investor, i'd be pretty pissed

And when it comes to non-essential workers, it goes beyond people collecting pay sitting in a corner doing nothing.

A lot of them add zero value, or even worse drag down productivity doing shit work. The fewer people the more streamlined it should be too (less cooks in the kitchen).

 

[DavidGzz]

I'm shocked that is only 15% of their work force. Intel is huge.

 

[Unknown Soldier]

Intel has been a sinking ship for a long time now but it took them this long to start panicking huh

ARM finally going to break the x86 last strongholds

 

[adamsapple]

Everyone acting like they don’t have 95,000 employees still.

They do, but 15000 is a huge number.

 

[ShirAhava]

Itsjoeover.jpg

Intel is a legacy brand now its time to move on *cries in Q6600*

 

[Unknown Soldier]

Love him or hate him, this is why Jensen is a pretty smart guy relative to other CEOs who appear to be somewhat useless and transparently interchangeable.

Nobody hates Jensen tho, he's basically your eccentric Asian uncle who goes to Taiwan to eat street food even though he's worth $30 billion

 

[LavitzSlambert]

Disaster of a company at the moment and honestly having read the report I don't see a pathway back for them any time soon, they are so out of position in every area it's not even funny. If not for The US government subsidies/grants in recent years I dread to think where they would be right now.

To top it all off, killing the dividend means nobody in their right mind will even park money with them while they attempt this turn-around. Clownshow, top to bottom.

This is what happens when you have a complacent arrogant business that thinks it's too big to fail. Given the current rate of their margin decline and the fierce competition for them both domestically and overseas it's not entirely out of the question that they will cease to exist in the next 10-15 years.

They should be embarrassed given the fact that their industry has been in easy mode since the pandemic as far as demand and margins go. To not capitalise on what has been a chips gold rush is insane.

Gelsinger is making all the right moves, it's just been a glacial pace compared to what needs to happen. I don't think Intel is going away, they occupy too important a role to the US strategically and have a metric fuck ton of patents. ARM is the new hotness but x86 and x64 aren't going anywhere for a significant portion of legacy businesses. What this means though, is that Intel's growth story is over. Suspending the dividends is huge and it's been anticipated for quite some time now. The sector is in a downturn as well, judging by AMD's positioning. I was aghast at Intel's stock price when it ballooned the last few months, but things are coming down to earth now. I just hope Battlemage is as good as rumored and that could be one bright spot in a sea of shit. If they shut down the GPU division it will not bode well.

 

[genesisblock]

With AI they just missed the boat. Just like AWS. But that's a separate matter. Intel has like 6 times more employees than Nvidia and their output is not comparable.

I just don't buy into the argument that management somehow is responsible for bad architecture decisions, coding etc. to a point that the device is broken. Usually it boils down to people not giving a shit, not caring and stuff. Intel is kinda like Boeing at this point - it is a lucrative place to work but nobody likes their job there and don't give a shit. I saw that at the bank when I was working there - high salary, no skills and crap results with or without management involvement. I eventually left to have more fun at a different company.

Management is a scapegoat all the time because - for some reason - people believe that developers want to have their product to work the best and perform the best. From what I have seen - that's not the case.

Sounds like another entitled self-serciving post to be sent to LinkedIn for validation. Management is responsible for both the performance and hiring of said employees. If they do not like their job, then it falls under the one that hired them. For me, when we get new hires, we run through different candidates for months just to find one that actually delivered and the company is all the better for it

 

[Caffeine]

I mean the i9 9900 is probably the last Intel chip I buy lol and it's been what 3 years now since I bought it.

 

[dwish]

With AI they just missed the boat. Just like AWS. But that's a separate matter. Intel has like 6 times more employees than Nvidia and their output is not comparable.

I just don't buy into the argument that management somehow is responsible for bad architecture decisions, coding etc. to a point that the device is broken. Usually it boils down to people not giving a shit, not caring and stuff. Intel is kinda like Boeing at this point - it is a lucrative place to work but nobody likes their job there and don't give a shit. I saw that at the bank when I was working there - high salary, no skills and crap results with or without management involvement. I eventually left to have more fun at a different company.

Management is a scapegoat all the time because - for some reason - people believe that developers want to have their product to work the best and perform the best. From what I have seen - that's not the case.

It kinda is management duty to make sure their people give a shit though! Hire the right people, give them the tools they need and motivate them to do good things for your company.

 

[Rentahamster]

Nobody hates Jensen tho, he's basically your eccentric Asian uncle who goes to Taiwan to eat street food even though he's worth $30 billion

Jensen ten years ago: Hey we're winning. Let's win moar.
Intel ten years ago: Hey we're winning. Let's fuck around and see what happens.

 

[Fabieter]

They got 10b from germany to build a 40b high end chip factory. Hopefully that investment is gonna be better than sony buying bungie.

 

[Fabieter]

lmao, that timing.

Not the worst time after intel dropping to a all time low and it really could work ons his favor because his reasonings makes sense

 

[tusharngf]

I still remember intel stuck on 4 core cpu for a very long period. Amd jumped the wagon and brought 6 core in low to mid range section.

 

[peish]

Intel will be fine! They have competitive products, stay the course!

Amd at its lowest points, have phenom2 cpu that got thrashed by nehalem and sandy bridge, next come bulldozer for an even bigger thrashing..

Intel is fine! Btfd!

 

[Silver Wattle]

Not the worst time after intel dropping to a all time low and it really could work ons his favor because his reasonings makes sense

He bought before the report dropped, so before the price tanked.


Intel:

 

[Yoda]

They rested on their laurels for a decade. The reality is that does more than not having a pipeline a of products, the culture of the company now has stage 4 cancer. Not really sure its fixable. Maybe give up on fabrication and just use TSMC?

 

[StreetsofBeige]

Maybe give up on fabrication and just use TSMC?

That comes down to how much ego they got.

Like any company that manufactures stuff with their own factories, own warehouses, or own internal sales team, there's always options to go external. There's pros and cons going external, but sometimes it makes sense due to streamlining the business and letting someone else with expertise handle shit you cant.

A lot of shit we all buy arent made by the company's own factories. Good chance it's outsourced overseas. I dont think Apple manufactures anything themselves.

Comes down to how ballsy they are cutting the cord.

 

[diffusionx]

The weird thing about all this is that Gelsinger is an engineer. He's not a talentless MBA hack idiot like the losers that took over Boeing. He was the main designer of the 486 which helped turn Intel into a behemoth. He should know better.

 

[StreetsofBeige]

The weird thing about all this is that Gelsinger is an engineer. He's not a talentless MBA hack idiot like the losers that took over Boeing. He was the main designer of the 486 which helped turn Intel into a behemoth. He should know better.

As someone who is the complete opposite (business, with zero product or science background), it can also go the other way. People rag on business people only caring about money and being lean, but sometimes that's good. Big tech companies have so much money floating around from past success, IPOs, or venture capitalist finding, it can get bloated in people, pay and perks like money unlimited. When you got too much money it's easy to coast and hire tons of people and not care.

But once the gravy train gets derailed, it's a giant 180 and panic time.

Who knows. Maybe Gelsinger being a techie at heart doesnt know what he's doing when it comes to being CEO faced with dropping sales and financials going down the drain.

 

[StreetsofBeige]

AMD doesn’t run Fabs.

Edit: Neither does Nvidia. Doing actual physical manufacturing is hard and labor intensive.

Apple doesn't either.

Intel controlling their own destiny making their own stuff is fine assuming it works out. But often times it's better to contract it out when the costs zoom up too high. Coke and Pepsi making shit all over the world hire regional bottlers to make it. My company uses a combo of company owned plants and outsourced factories. The products we sell skew more to internal factories if it's related to health and wellness products or anything Health Canada or FDA related. But for non-edibles, we outsource most of it. Who cares. As long as it works out.

 

[Fabieter]

He bought before the report dropped, so before the price tanked.


Intel:

Oh sheet that's rough.

 

[genesisblock]

It kinda is management duty to make sure their people give a shit though! Hire the right people, give them the tools they need and motivate them to do good things for your company.

It's amazing this has to be said. Does he think every company behaves like Boeing and they just lucked out of not getting caught?

 

[GHG]

Oh sheet that's rough.

Yeh he'll be down over 20%.

That can be fine if you size the position appropriately (no long term position in an individual stock should take up more than 3-5% of your total portfolio size), but if you go all in that's a tough pill to swallow.

 

[Von Hugh]

Yeh he'll be down over 20%.

That can be fine if you size the position appropriately (no long term position in an individual stock should take up more than 3-5% of your total portfolio size), but if you go all in that's a tough pill to swallow.

All of the money in one stock. It's just stupid. Wiped away 100k in 30 seconds.

 

[Unknown Soldier]

The weird thing about all this is that Gelsinger is an engineer. He's not a talentless MBA hack idiot like the losers that took over Boeing. He was the main designer of the 486 which helped turn Intel into a behemoth. He should know better.

Gelsinger was given the unenviable task of turning around a sinking cruise ship that was already halfway to the bottom of the ocean. He's actually trying to do quite a lot but most people suspect he was appointed to the position way too late. We'll see I guess

 

[Tarin02543]

Any idea when AM6 will launch? I want to ditch my alderlake mobo

 

[SHA]

He's The Tech Jesus!!!! He's coming after all these people.

 

[SHA]

Who's next?

 

[SHA]

I could tell Linus is no longer relevant, I'm not joking, this probably pissed a lot of people off.

 

[winjer]

The weird thing about all this is that Gelsinger is an engineer. He's not a talentless MBA hack idiot like the losers that took over Boeing. He was the main designer of the 486 which helped turn Intel into a behemoth. He should know better.

Way too many mistakes were made before he got the job. And the internal culture and organization of the company was lost.
Pat might be an engineer and that helps in a tech company. But I don't think he is a leader of people, capable of mobilizing the people in the right direction.

Let us remind how a CEO that is not focussed on tech products, can suck a company. Which is what happened when Intel elected CEOs that were from finance and not from engineering.

 

[ricardo_sousa11]

Way too many mistakes were made before he got the job. And the internal culture and organization of the company was lost.
Pat might be an engineer and that helps in a tech company. But I don't think he is a leader of people, capable of mobilizing the people in the right direction.

Let us remind how a CEO that is not focussed on tech products, can suck a company. Which is what happened when Intel elected CEOs that were from finance and not from engineering.

Intel never had culture, they have always been the most generic, boring, corporate environment out there.

 

[winjer]

Intel never had culture, they have always been the most generic, boring, corporate environment out there.

They might be boring, but they had the culture of a proper tech company. For decades they were able to create some of the most advanced chips and process nodes.
But it seems like that is now gone.

 

[ChuckeRearmed]

For me, when we get new hires, we run through different candidates for months just to find one that actually delivered and the company is all the better for it

The problem is that there are too many people who know how to pass the interview but don't know how to work.

Interview at this point does not guarantee anything - from leetcode to technical tasks, you cannot test person's performance and desire to improve. And in big companies you cannot ensure that everybody is hiring only good people and then people move between areas and we have mess everywhere.

 

[genesisblock]

The problem is that there are too many people who know how to pass the interview but don't know how to work.

Interview at this point does not guarantee anything - from leetcode to technical tasks, you cannot test person's performance and desire to improve. And in big companies you cannot ensure that everybody is hiring only good people and then people move between areas and we have mess everywhere.

So, either my points weren't clear enough or you're not understanding correctly but I'll assume the former. It took is months to find the right candidate meant we were rejecting each and every one until we found one where we are confident that will perform. It's true that interviews do not assess the full performance upon hiring but it shows that a interview isn't so easily "passed" as you claim. The interviewer either doesn't know what he/she is looking for or they were not asking the right questions.

 

[ricardo_sousa11]

They might be boring, but they had the culture of a proper tech company. For decades they were able to create some of the most advanced chips and process nodes.
But it seems like that is now gone.

Culture =/= products.

They are a leading tech company in the consumer space, but they never had any culture to begin with, and never even made an effort to make one.

They are the pure definition of corporate america, and thats not a good thing.

 

[winjer]

Culture =/= products.

They are a leading tech company in the consumer space, but they never had any culture to begin with, and never even made an effort to make one.

They are the pure definition of corporate america, and thats not a good thing.

I don't think you understand what it means for a company to have an internal culture.

 

[ricardo_sousa11]

I don't think you understand what it means for a company to have an internal culture.

I think your definition of culture is not accurate as well.

A company can be successful and have an awful internal culture, and theres millions of examples of this (specially in the gaming industry for example).

In Intels case, check what the exemployees are saying, maybe you'll be surprised.

Not that it matters, the company has very little upside potential for the foreseeable future, and this could be fixed if they focused more on their culture and employee wellbeing, specially when other companies in the sector (nvidia, amd for example) offer much more in this sense.

 

[winjer]

I think your definition of culture is not accurate as well.

A company can be successful and have an awful internal culture, and theres millions of examples of this (specially in the gaming industry for example).

In Intels case, check what the exemployees are saying, maybe you'll be surprised.

Not that it matters, the company has very little upside potential for the foreseeable future, and this could be fixed if they focused more on their culture and employee wellbeing, specially when other companies in the sector (nvidia, amd for example) offer much more in this sense.

We do know that Intel had a great culture of innovation and technology advancement. We have decades of delivery of great products.
This was lost during the 2010's. And we know this because we have reports from Intel workers, that tell about how Intel lost it's way.
More damning, even Jim Keller only lasted a couple of years inside Intel.
This is the part that you don't understand, Intel didn't lose it's internal culture yesterday. It started losing it 15 years ago.

 

[ricardo_sousa11]

We do know that Intel had a great culture of innovation and technology advancement. We have decades of delivery of great products.
This was lost during the 2010's. And we know this because we have reports from Intel workers, that tell about how Intel lost it's way.
More damning, even Jim Keller only lasted a couple of years inside Intel.
This is the part that you don't understand, Intel didn't lose it's internal culture yesterday. It started losing it 15 years ago.

You keep saying stuff I dont think you know what it is.

Again, I didnt say they lost its culture yesterday, Im saying they never had it.

 

[winjer]

You keep saying stuff I dont think you know what it is.

Again, I didnt say they lost its culture yesterday, Im saying they never had it.

A company without a strong internal culture of innovation could have never delivered so many great products, throughout so many decades.

 

[ricardo_sousa11]

A company without a strong internal culture of innovation could have never delivered so many great products, throughout so many decades.

They could because the tech was evolving fast enough and community (specially hacking community) was standing behind it.

Again, being sucessfull is unrelated to internal culture.

You claim internal culture, and then talk about the success of their products, I fail to see any connection here.

One of the biggest companies in the world Blackrock, has the worst culture of any company in any industry, and I could go on for a million other companies.

EA is huge and sucessfull, awfull culture.

Boeing also a huge company, one of the worst internal cultures ever, from killing whistleblowers to SA scandals.

Now, as I said, I wouldnt say Intel has an awfull culture, they just have no culture at all, they never did.

 

[geary]

Thanks Kamala

You misspelled Phill Spencer

 

[tusharngf]

lmao, that timing.

he could make a short profit out of this deal. In 10yrs this stock will not go that high. Whats the % LTCG tax in US?