CEO of beleaguered Intel, Pat Gelsinger, who in 2021 attempted to denigrate Apple by referring to the firm as “a lifestyle company,” has announced the axing of over 15,000 workers, downsizing the struggling chipmaker’s workforce by over 15 percent, while also stopping “non-essential work.”
Sean Hollister for The Verge:
The company currently employs over 125,000 workers, so layoffs could be as many as 19,000 people.
Intel will reduce its R&D and marketing spend by billions each year through 2026; it will reduce capital expenditures by more than 20 percent this year; it will restructure to “stop non-essential work,” and it’ll review “all active projects and equipment” to make sure it’s not spending too much.
“This is painful news for me to share. I know it will be even more difficult for you to read,” reads part of a memo from Intel CEO Pat Gelsinger to staff…
The company just reported a loss of $1.6 billion for Q2 2024, substantially more than the $437 million it lost last quarter…
Intel is currently dealing with two generations of potentially defective desktop CPUs, though the company currently believes it can mitigate the issue with a software update and doesn’t currently plan recalls. 4 percent dip from 130,700 employees in March to 125,300 employees in June is not included in the total.
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MacDailyNews Take: Escargot, anyone?
Sometimes when you stumble in a race, even in a marathon, if you take too long to recover, you’re done. Winning is off the table.
But, hey, you never know, Apple could launch a line of calculators any day now. Intel would be a great foundry for that.
“We’ve got a supercomputer and a calculator. Calculator’d be good for you.” – Tim Cook to Pat Gelsinger – MacDailyNews, April 7, 2021
If Apple ever has a need for big, hot, slow 10nm and up antiquated junk with yields from hell, we’re sure they’ll give old inept Intel a call! — MacDailyNews, March 24, 2021
Apple’s break-up with Intel is a glaring sign that the future for Intel isn’t promising. Missing the mobile chip revolution may have been a fatal mistake for Intel. – MacDailyNews, December 30, 2020
The price for Intel’s poisonous hubris has come due.
iPhone, killer. — MacDailyNews, March 12, 2018
[Intel’s decision to pass on Apple’s iPhone] has to be close to the top of the list of Biggest Business Mistakes in History. — MacDailyNews, May 17, 2013
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