Intel cuts 12,000 jobs in restructuring initiative

[Samfisher]

Source : http://www.engadget.com/2016/04/19/intel-cuts-12-000-jobs-in-restructuring-initiative

 

 

Quote

Intel announced that it's laying off 12,000 employees today in a radical measure designed to restructure the company. In a statement, the company said that it plans to accelerate its evolution from a PC-centric business to one that's more focused on the Internet of Things. Last year, Intel's growth in data and IoT businesses made up 40 percent of its revenue, while the PC market continues its market slump.

40% of Intel's revenue was made up in "data" (what in the world does this even mean, so non-specific) and Internet of Things.  Wow, really now?  Intel has almost no play in any sort of mobile device except laptops which doesn't classify as IoT anyway.  They don't really power any smart devices, and those that they do have almost no market share.  This leads me to think that since they announced it together as "data and IoT", it probably meant the processing of all the data IoT devices collect with the analysis and storing and usage of these data.  I had no idea Intel was so big in this tiny market subsection, and that it lead their earnings by a solid 40% of all revenue.

 

[patrickjp93]

"Data" means datacenter, which means servers.

 

Uh, Intel's Quark processor is leading the charge in IoT, and SoFIA is picking up lots clients. Please do keep up.

[Djole123]

I see this as a road to fail.

 

They will probably do that and go back to PC market. Intel has nothing to do with IoT.

 

And if that is not an argument, seriously, 12000 people is wayy too much to fire.

 

AMD is going to rocket especially if Intel does this and team red releases Zen CPU's/APU's.

[Samfisher]

1 minute ago, patrickjp93 said:

"Data" means datacenter, which means servers.

 

Uh, Intel's Quark processor is leading the charge in IoT, and SoFIA is picking up lots clients. Please do keep up.

There really hasn't been anything worthwhile with a Quark or a SoFIA in them at all.

[Mr.Meerkat]

Never mind how they are going to stop focusing on the desktop/pc markets...but axing 12 thousands jobs? Not 100, not 500 but 12 thousand jobs? That's not one department...but more like a whole division...why the hell would they lay off almost 10% of all of it's staff? (they had like 107k at the end of 2015...)

Edited April 19, 2016 by Mr.Meerkat
wrong word used, not offices but division

[Mikensan]

3 minutes ago, Samfisher said:

 

40% of Intel's revenue was made up in "data" (what in the world does this even mean, so non-specific) and Internet of Things.  Wow, really now?  Intel has almost no play in any sort of mobile device except laptops which doesn't classify as IoT anyway.  They don't really power any smart devices, and those that they do have almost no market share.  This leads me to think that since they announced it together as "data and IoT", it probably meant the processing of all the data IoT devices collect with the analysis and storing and usage of these data.  I had no idea Intel was so big in this tiny market subsection, and that it lead their earnings by a solid 40% of all revenue.

 

Intel makes wireless chipsets and various microcontrollers (quark I think). They also own a lot of smaller companies though if the layoffs are directly intel then it wouldn't be related. Their atom processor is used a lot, even in some tablets.

[Tomsen]

3 minutes ago, patrickjp93 said:

Uh, Intel's Quark processor is leading the charge in IoT, and SoFIA is picking up lots clients. Please do keep up.

Oh it is? That is not what I'm hearing.

Sofia picking up new clients stopped pretty quickly again. Who are the "new" clients?

 

Keep us up to date, you all knowing creature

[Samfisher]

Just now, Mikensan said:

Intel makes wireless chipsets and various microcontrollers (quark I think). They also own a lot of smaller companies though if the layoffs are directly intel then it wouldn't be related. Their atom processor is used a lot, even in some tablets.

And those tablets are few and far between, and no way does it contribute so much to Intel that they are fine with cutting 12k jobs, presumably from their PC business division.

[Mr.Meerkat]

1 minute ago, Samfisher said:

And those tablets are few and far between, and no way does it contribute so much to Intel that they are fine with cutting 12k jobs, presumably from their PC business division.

12,000 sounds like a whole division is being fired so I won't be surprised if many of their PC division employees has been laid off...they may as well go to AMD and work for them...

[patrickjp93]

6 minutes ago, Samfisher said:

There really hasn't been anything worthwhile with a Quark or a SoFIA in them at all.

For you*

 

Just as Nvidia is getting into the driverless car game, Intel is getting more products into "smart" cars because of SoFIA. GM and Volkswagen already use them. Further, it's never about the bleeding edge. It's about mass production scale.

[Belgarathian]

2 minutes ago, Mr.Meerkat said:

12,000 sounds like a whole division is being fired so I won't be surprised if many of their PC division employees has been laid off...they may as well go to AMD and work for them...

Yeah, but they're not going to fire Mr. Genius who holds the keys to the next gen. processor development. 

 

Those 12,000 jobs might be the 10% of the organisation that doesn't have a good work ethic, or may be in administration, or support roles. 

[patrickjp93]

6 minutes ago, Samfisher said:

And those tablets are few and far between, and no way does it contribute so much to Intel that they are fine with cutting 12k jobs, presumably from their PC business division.

Few and far between? No. Either a large plurality or the majority of the tablet market now belongs to Intel. Phones are another story of course.

[Samfisher]

Just now, patrickjp93 said:

For you*

 

Just as Nvidia is getting into the driverless car game, Intel is getting more products into "smart" cars because of SoFIA. GM and Volkswagen already use them. Further, it's never about the bleeding edge. It's about mass production scale.

Googleing both GM and VW + Intel SoFIA leads to nothing.

[Mikensan]

@Samfisher Yea I am a little in awe about it making up a large chunk of revenue, and when they say "data" I wonder if they mean their storage (SSDs) or something like another posted said - data centers. Granted, revenue =/= profit, so maybe in volume their data/ioT is greater, even then it's hard for me to swallow that their desktop chipset doesn't have more volume.

 

How many jobs are affected is a hard thing to really figure out - some companies just throw jobs are their product lines thinking that'll make for a great product.

[Mr.Meerkat]

1 minute ago, Belgarathian said:

Yeah, but they're not going to fire Mr. Genius who holds the keys to the next gen. processor development. 

 

Those 12,000 jobs might be the 10% of the organisation that doesn't have a good work ethic, or may be in administration, or support roles. 

True but still...12,000 people are now going to have to find new jobs again which in the current state of the job market may be impossible...

[Mikensan]

@Samfisher - Rethinking it, I can understand their PC market declining... unless you're a gamer who stays on the bleeding edge, even an i7 bloomfield (circa 2009) is a very capable processor for today's needs. Probably very few feel the need to upgrade beyond a SSD.

[SurvivorNVL]

12,000 people with a resume that says they worked for Intel.  Hell, they practically don't even have to market themselves when they're looking for new jobs.  

[Tomsen]

1 hour ago, patrickjp93 said:

Few and far between? No. Either a large plurality or the majority of the tablet market now belongs to Intel. Phones are another story of course.

Last news from Intel was the tablet volume was down 44% compared to last year (most likely due to contra-revenue stopping).

I doubt Intel have the majority in the tablet market, but you could show me some numbers showing otherwise, since you are so certain.

[MrRavens]

Holy shit that's a lot of jobs. Good luck to those that lost probably a large source of their income.

[DXMember]

didn't they cut like 12k jobs last year?

[Voids]

1 hour ago, Mikensan said:

@Samfisher - Rethinking it, I can understand their PC market declining... unless you're a gamer who stays on the bleeding edge, even an i7 bloomfield (circa 2009) is a very capable processor for today's needs. Probably very few feel the need to upgrade beyond a SSD.

I still rock an i7 950 though I have it over locked to 4.2ghz with HT. The cpu is a beast for having more than what 5 years? 

[DocSwag]

2 hours ago, Djole123 said:

I see this as a road to fail.

 

They will probably do that and go back to PC market. Intel has nothing to do with IoT.

 

And if that is not an argument, seriously, 12000 people is wayy too much to fire.

 

AMD is going to rocket especially if Intel does this and team red releases Zen CPU's/APU's.

They aren't gonna fire their CPU designing geniuses. Chances are it will be stuff like the mobile department that don't make money or lose money that will see lot's of people get fired. It'd be pretty stupid if they fired the people that keep the company afloat.

[Deletive]

 

2 hours ago, LtRavens said:

Holy shit that's a lot of jobs. Good luck to those that lost probably a large source of their income.

These are employees are probably going to be payed for another 2-4months in order to have an income to live off till they find another job 

[MrRavens]

27 minutes ago, Deletive said:

 

These are employees are probably going to be payed for another 2-4months in order to have an income to live off till they find another job 

I'm sure, still wish them luck out there.

[YamiYukiSenpai]

4 hours ago, Djole123 said:

I see this as a road to fail.

 

They will probably do that and go back to PC market. Intel has nothing to do with IoT.

 

And if that is not an argument, seriously, 12000 people is wayy too much to fire.

 

AMD is going to rocket especially if Intel does this and team red releases Zen CPU's/APU's.

They're not leaving the PC market.  They're just gonna open themselves up to different directions, like the cloud where the money seems to be at.  And besides, the PC market isn't going back up, thanks to mobile.