Intel could cut as many as 20,000 jobs next week

[kurth]

Intel's big layoff near
Mark LaPedus, EE Times
(09/01/2006 11:05 AM EDT)

SAN JOSE, Calif. — Troubled Intel Corp. is expected to announce major layoffs next week, although the estimated cuts appear to be all over the map right now. As reported on EET.com in July, Intel was expected to cut from 10,000 to 15,000 workers as part of a major "overhaul" at the company. The chip giant has some 100,000 employees worldwide.

The major job cuts were expected in July, but Intel reportedly delayed the move. Instead, the chip giant fired 1,000 managers as part of an effort to cut $1 billion in costs.

Now, Intel's anticipated — and big — layoffs are supposed to take place on Tuesday of next week, according to CNET. Intel could cut as many as 10,000 people, according to the online news service.

Meanwhile, in a separate report, The Wall Street Journal projects that Intel could cut as many as 20,000 jobs...

http://www.eetimes.com/news/semi/showArticle.jhtml?articleID=192501101

[SoCalDem]

1. They have to "hit their numbers" somehow..

laying off people is the easiest way to do it :(

But hey.. the economy's just peachy.. the CNN money-honey just said so..

[mnhtnbb]

2. That economy is just great, huh, Bushie boy?

[drdtroit]

3. They are just "turning the corner" n/t

[sable302]

4. on an entirely unrelated note, Intel stock up

1.5 percent on the news.

:eyes:

[Xithras]

5. Sorry to rain on the doom parade....

This isn't related to the economy. Intel has been hit by a 1-2 suckerpunch over the past several years. Back in the late 90's, Intel divested a lot of it's "non-core" businesses like networking, mainboard manufacturing, and video processors to focus on the then-hot CPU market. Since then, PC sales have plummeted, and CPU sales along with them. Those sales haven't plummeted because of a decline in the economy, they declined because of a stagnation in PC innovation. Unless you're a bleeding edge gamer, there are few things that a modern dual core 3.6GHz processor can do that a four year old 2GHz can't do just as well. With no killer app on the market demanding improved processing speeds, there's been little interest in replacing computers that worked fine. Even the hardcore gamer market has been shrinking as consoles like the XBox 360 steal players away from the PC platform.

And if that weren't enough, they also get to deal with AMD. Once a much smaller "also-ran", modern AMD chips are almost as fast as Intel chips (don't tell me they are you AMD fans, the latest dual core Intel chips just surpassed AMD...barely). They tend to sell for a bit less money, and have become the favorite among homebuilders and budget PC assemblers. This second hit is undermining Intel when they can least afford to be undermined.

The problem with Intel is that it's a company built on the assumption of infinite market expansion. For a decade they've been doubling performance every year, and their technological innovation has driven sales. Faster CPU's allowed better applications, which in turn demanded those faster CPU's. It was a vicious upgrade cycle, and one that kept Intel employees rich and Intel itself even richer. Nowadays that cycle is broken. There are no apps that NEED, or can even really use, a Dual Core Extreme 3+Ghz CPU...and there's no software on the horizon that needs it either. People can't justify spending the money, so Intel doesn't get the sales. When Intel doesn't get sales, their income plummets and people get laid off.

[Ezlivin]

8. Dual 3Ghz Dual Core checking in

It's so damned fast that I read your post before it went up.

I waited six years to upgrade my Mac. Now I have so much damned power that gravity is warped around me.

Last night just for fun I ran a simulation of the universe.

Seriously though, it's enough power for anybody. I won't need to upgrade for quite a while.

Well, that's what I tell my wife. :)

[Kolesar]

9. Nice account

A question for you, if you don't mind. My 2 year old "2.9GHz equivalent" AMD equipped Compaq seems to be running slow. Is there something I can look into to determine the nature of the problem? An executable in WindowsXP? A site on the web? I moved it back to a 6 week-ago "restore point" and it got "a bit better". Thanks

[Xithras]

12. Sludge :)

Seriously, that's what we used to call it. Over a period of years, Windows starts to pick up "sludge" as programs are added and deleted. Files get added and never removed, registry entries (the computers operating instructions) get added and swell its size, log files grow huge, and background programs proliferate. Every now and then you just have to clean the computer out.

You really only have two choices. First, you can find yourself a really good Windows geek who knows where this stuff is hiding who can clean it out for you. Tell him you want EVERYTHING gone...the orphaned registry entries, abandoned DLL's, the works. Sadly, these good Windows geeks can be hard to find (and expensive). Option 2 is to format the computer and start from scratch. Reinstall Windows from the original CD's, and it will run as quickly as the day you bought it. The problem, of course, is that you need to back up your data first, and then spend the better part of a day reinstalling Windows, all of your programs, and loading your data back onto the computer.

[malmapus]

14. I'd go with option 2 and take it a step further..

Partition your drive when you reinstall your OS, set aside maybe 3 or 4 gig for your "c" drive. Then partition the rest of the drive to be your file system so to speak.

Then from there on, just keep all your non-OS stuff on your file system drive and leave the OS drive alone. Makes reinstalling the OS in the future all that much easier and not having to worry about backing up your files or moving the off the system.

[Kolesar]

15. My Compaq HD is already partitioned with a drive from which Windows can be

...restored. It restores the standard applications, too. I did it once in 2005. Some virus got to the PC. I lost data and images.

Per your advice, though, I would make a C: and a D: and put the applications and data on the "new" D:, right?

I could probably deal with Xithras idea well. I have a backup routine that pulls my images and data off--I keep them in special folders in "My Documents". The applications reinstall themselves when I do the restore function. I would have to reinstall my mapping programs and Outlook, which is about all I have added.

[malmapus]

16. Yup yup!

"Per your advice, though, I would make a C: and a D: and put the applications and data on the "new" D:, right?"

Exactly, this type of setup is pretty routine for me now. Having a pretty addictive gaming habit and fast burn out rate, seems that I'm wiping out my Windows 3 times a year or so due to all the junk I end up with on my system :).

So I'll keep all my applications and data on the "D" drive (along with drivers for my hardware). Then everytime I rebuild my machine, I just wipe out the C partition to make a clean slate and reinstall Windows over again. Then just a matter of reloading drivers and what not to get it back into shape.

[EnviroBat]

6. Hmmmm, I woulda thought..

With their recent expansion in the Mac world that their market share would have incresed? I guess the world of giant, ugly corporations is a fickle thing...

[jmowreader]

13. Well, not really

The major thing Apple's move to Intel did for Intel was kept its numbers from being even worse than they already are.

Intel's biggest problem right now is that Windows Vista hasn't dropped yet. When it does, Intel will be okay for probably 18 months as people start to migrate to Vista using the standard technique for major Windows upgrades: buying a new computer and transferring all your files to it.

Right now NO ONE who does not absolutely need a new Windows computer is buying one. (Absolute need in this business: opening new company, starting to attend a university that requires you bring your own computer, some sort of computer-eating casualty...)

Macs are in a different situation: the Intel Macs have just come out, people are buying them, all is wonderful. This will continue until everyone who will migrate has done it.

If Microsoft can't get Vista on the street by Christmas, you'll see a lot more stories just like this one--this time computer manufacturers will be the ones to take the hit. It won't be pretty.

[tjwash]

7. I'm so glad I don't work for them anymore.

And I'll bet you any money every single one of those 20000 jobs will be in the United States.

I got out of the IT gig a couple of years ago after spending 15 years in it. Over those years I did the rounds, while working for Intel, Sun, Veritas, and Cisco.

Intel was one of the very first companies to jump on the cheap labor out-sourcing bandwagon. They sent all the manufacturing out in the mid and late 90's to Malaysia, the Philippines, and Ireland. Their stock jumped through the roof at the time, but the handwriting was pretty much on the wall. I spent a few years overseas for them doing set ups on the overseas factories. The reason I quit, was that my conscience just would not let me be a part of the device that took so many American jobs and off shored them anymore.

So I got out of the whole industry after that, and never looked back.

[malmapus]

10. I'm already seeing "re-oganization"

Can't get into details of course but a good portion of what I work on is being sent across the pond. They tell me that the other stuff I work on will stay in house, but I'm not waiting around. Already have been job searching in anticipation of this next round of layoffs (Intel had just laid off 1,000 mid management folks a month ago).

[kdpeters]

17. I walked outta there two years ago -- wish it were ten

"Great place to work" my ass. The money was good if you don't mind selling your soul. Great values, but the way they were interpreted was pretty f-ed up. Probably not much different than any large corporation, but I bought the BS for far too long at too great a cost.

Making much, much less these days but I can't wait to get to work in the mornings and I'm quite proud of the place where I work and the difference we make. If feel sorry for the 80,000 that might continue to work there. Those who stand to leave don't yet know how lucky they are.

[genie_weenie]

11. That's great news! 10,000 new recruits for Iraq.

Manpower problem solved.