Intel Reports Second Quarter 2024 Financial Results
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Re: Intel Reports Second Quarter 2024 Financial Results
#2Reducing Operating Expenses: The company will streamline its operations and meaningfully cut spending and headcount, reducing non-GAAP R&D and marketing, general and administrative (MG&A) to approximately $20 billion in 2024 and approximately $17.5 billion in 2025, with further reductions expected in 2026. Intel expects to reduce headcount by greater than 15% with the majority completed by the end of 2024.
Re: Intel Reports Second Quarter 2024 Financial Results
#3This sounds worryingly like “sales are down, cut costs to maintain profitability to spike our stock numbers” and not enough focus on what I believe is actually wrong, which is that they can’t seem to reliably make competitive processors in a stiff market.
Anyone else feel like this is bean counters at Intel playing the wrong game? I personally feel like leadership at Intel lost the plot almost a decade ago.
Re: Intel Reports Second Quarter 2024 Financial Results
#4Intel had over 130,000 employees as of a couple of months ago.
15% layoffs is nearly 20,000 people.
Re: Intel Reports Second Quarter 2024 Financial Results
#5Suspending the dividend is poetic in a sense. They'd been taken over by bean counters decades ago and slowly pissed away their privileged position at the top of computing.
They essentially ended up where Boeing did, but at least didn't kill anybody.
Re: Intel Reports Second Quarter 2024 Financial Results
#6This sounds worryingly like “sales are down, cut costs to maintain profitability to spike our stock numbers” and not enough focus on what I believe is actually wrong, which is that they can’t seem to reliably make competitive processors in a stiff market. Anyone else feel like this is bean counters at Intel playing the wrong game? I personally feel like leadership at Intel lost the plot almost a decade ago.
I believe the ambitious plan by Gelsinger to release "5 nodes in 4 years", as well as building couple of new factories necessarily resulted in a lot of redundancy and hiring people who were needed for the transition period, but not necessarily long term. Now that they are nearing the completion of Intel 20A and 18A R&D cycle it seems logical point to start cost-cutting.
Re: Intel Reports Second Quarter 2024 Financial Results
#7This sounds worryingly like “sales are down, cut costs to maintain profitability to spike our stock numbers” and not enough focus on what I believe is actually wrong, which is that they can’t seem to reliably make competitive processors in a stiff market. Anyone else feel like this is bean counters at Intel playing the wrong game? I personally feel like leadership at Intel lost the plot almost a decade ago.
10 years from now, when the downfall of Intel is being taught at business schools, what are going to be the big takeways and now-obvious mistakes?
Re: Intel Reports Second Quarter 2024 Financial Results
#8[deleted]
Re: Intel Reports Second Quarter 2024 Financial Results
#9This sounds worryingly like “sales are down, cut costs to maintain profitability to spike our stock numbers” and not enough focus on what I believe is actually wrong, which is that they can’t seem to reliably make competitive processors in a stiff market. Anyone else feel like this is bean counters at Intel playing the wrong game? I personally feel like leadership at Intel lost the plot almost a decade ago.
I believe the ambitious plan by Gelsinger to release "5 nodes in 4 years", as well as building couple of new factories necessarily resulted in a lot of redundancy and hiring people who were needed for the transition period, but not necessarily long term. Now that they are nearing the completion of Intel 20A and 18A R&D cycle it seems logical point to start cost-cutting.
One can only hope. Goodness knows it would be better if Intel were more competitive in this market. Let's cross our fingers that you're right and we see a resurgence after the new fabs come online.
Re: Intel Reports Second Quarter 2024 Financial Results
#10This sounds worryingly like “sales are down, cut costs to maintain profitability to spike our stock numbers” and not enough focus on what I believe is actually wrong, which is that they can’t seem to reliably make competitive processors in a stiff market. Anyone else feel like this is bean counters at Intel playing the wrong game? I personally feel like leadership at Intel lost the plot almost a decade ago.
10 years from now, when the downfall of Intel is being taught at business schools, what are going to be the big takeways and now-obvious mistakes?
Don't run your own fab?
It makes business sense but I don't know if I like that answer. What if everyone did that? Should everyone just use TSMC? That's stupid IMO.