The Unofficial Intel Blog

Poking the beehive with a stick

Friday, July 28, 2006

Goodbye, farewell, auf Wiedersehen, adieu

If I am not mistaken, this is the last day for the 1000. Some have surely left for the day. Now we wait for the second shoe...

19 Comments:

At July 28, 2006 5:59 PM, Anonymous Anonymous said...

Let me play the Devil's advocate for a second. Let's theorize there are no further employee layoffs (yeah, right).

The stated purpose of the 1000 manager layoff was to reduce the number of managers with respect to employees, among other things. If they get rid of a sizeable number of employees, wouldn't we be back in the same spot, as far as the employee-manager ratio goes?

 
At July 30, 2006 8:08 PM, Anonymous Anonymous said...

Does anybody here know the criteria for the next cuts that are half-confirmed to be happening Aug 15th?

 
At July 31, 2006 10:36 AM, Blogger PentrinoVI said...

In my opinion, the manager's first thing was to set proper tone. Intel is all about PR these days. Remember, the customer is you!

For the other anon., criteria would probably be the same as always, some combination of slower and less well politically connected. Working on a product that no one cares about gets you bonus points.

 
At August 03, 2006 6:03 PM, Anonymous shoe fetish said...

The second shoe is here. Rumor is the second "employment action" is due by August 8th, with layoffs by the 15th.

Sayonara and sorry to all affected :(

 
At August 09, 2006 10:04 PM, Anonymous Anonymous said...

Over 200 going in EMEA alone. Mainly Middle manager 'doers' a few scores are being settled here...

Sad stuff. Criteria is 'sorry sucker' you don't have the right political credentials - your fired.

Intel's performance will only get worse from here.

 
At August 10, 2006 11:25 AM, Anonymous Anonymous said...

Now where did I hear that 15 August date? Oh yes, it's the Oregon Giving Ambassador luncheon. No that's the 24th. The 15th? Hmmm, I read it somewhere now whare was it? Somebody please tell me so I can hold tham accountable for my high anxiety.

 
At August 10, 2006 6:11 PM, Anonymous Anonymous said...

The latest rumor I've heard is that this is being pushed to September. There were no announcements on the 8th that I know, so that would corroborate it.

The reason seems to be that Legal and HR are overloaded. Take that as you wish, but it may be that the number of people impacted is rather large, hence the paperwork overload.

 
At August 10, 2006 10:00 PM, Anonymous Anonymous said...

dudes - i've heard that next week, August 14, 15 or 16, 10k to 20k of us will be looking for new employment.

we will have until mid september before we are booted from the company.

 
At August 16, 2006 11:16 AM, Anonymous Anonymous said...

So 22,000 is now confirmed to go. Jezzus, more than I thought. Anyone know what the criteria will be?

 
At August 16, 2006 5:22 PM, Anonymous Anonymous said...

22k! where are you hearing these numbers?

 
At August 16, 2006 6:56 PM, Anonymous Anonymous said...

Another anon here. No new news, but the site visits from Paul and Mr. Efficiency himself, starting next week, seem rather ominous. Damage control, perhaps?

 
At August 17, 2006 3:08 AM, Anonymous fluffyblueskywarrior said...

SS (Mr. Efficiency) has pulled it together, and the words already being sent down the line. Paul’s walkabout is an attempt at being a cool walk tall guy.. ‘I’m brave enough to look ‘em in the eye’ type stuff before we fire ‘em.
We need a new vision and a new visionary (yep guys, Paul should take his share of the blame here and just go) this is a business in decline and has been for the last 3-4 years and Pauls been telling everyone, he 'knows what he's doing' and all we thought is he is talking more trash (come on, we’ve all said it privately). Just check out the option values, all we attract now is poor second class grads, the smart ones just pass straight over us.
22k will be a minimum cut down, sell-offs of mini-Intel’s dollar guzzling bells will continue (what’s left?) The write down hit could be over a nice round couple of billion (so we tick stockholders off again, as it is we are reduced to being a trading stock -if you guys don't know why, then you should find out). Contractors will not get renewed in the next wave (anyone admit to being told to boot the contractors now?), and then the hatchet is being taken to the marketing organisation and fluffy program warriors. HR dude said that the word is the next wave will be ‘last in, first out’. Are they out of their friggin minds, we need the exact opposite! Communications looks like being an A1 candidate for selling on or burning(not before time, not sure who would buy it, we all know it’s a complete wingding. Can we start a get rid of PO he doesn’t have our confidence anymore thread? Anyone read the 'It's a fundamental fact of business doc yet?' All smells of softening us up ready for the big hit.

 
At August 21, 2006 9:24 AM, Anonymous Anonymous said...

well - are they ever going to have the lay-offs?

wow - Intel knows how to violate the tenants of lay-offs: cut once, cut deep, cut quickly

 
At August 21, 2006 4:32 PM, Anonymous Anonymous said...

The sad thing is, the "1000 managers" was just a PR spin. I know 2 very experienced Intel engineers got laid off, among the "1000", and they were not even managers. It's all politics.

 
At September 01, 2006 4:17 PM, Anonymous insider said...

http://www.thestreet.com/_nasdaq/newsanalysis/techsemis/10306875.html

 
At September 01, 2006 4:25 PM, Anonymous justleft said...

Intel May Announce at Least 10,000 Job Cuts Next Week (Update3)

By Ian King

Sept. 1 (Bloomberg) -- Intel Corp. Chief Executive Officer Paul Otellini may cut at least 10,000 jobs next week, or about 10 percent of the chipmaker's workforce, in his efforts to slash $1 billion in costs this year.

Otellini will discuss the results of a 90-day internal review with employees on Sept. 5, said Patrick Ward, a spokesman for Intel. In an interview today Ward called reports on job cuts ``speculation.'' Mark Edelstone at Morgan Stanley is among analysts who predict at least 10,000 reductions.

Intel, the world's biggest semiconductor maker, is wrapping up its most sweeping overhaul since the 1980s as Otellini battles market share losses and falling sales. He decided to fire 1,000 managers in July to restore profit growth, marking the biggest cuts at the Santa Clara, California-based company in four years.

``It would be seen as lame if Intel does less than 10,000,'' said David Wu, an analyst at Global Crown Capital in San Francisco. He rates the stock ``overweight'' and owns shares. Wu is advising investors to buy Intel's stock because he expects recently introduced products will help recapture market share.

Shares of Intel, down 22 percent this year before today, rose 14 cents to $19.71 at 10:58 a.m. New York time in Nasdaq Stock Market composite trading. The Philadelphia Semiconductor Index fell 1.1 percent.

Market Share

Otellini, 55, is eliminating jobs and selling businesses after forecasting the first annual sales drop in five years. While Intel tried to create new markets for its personal-computer microprocessors, the company's closest competitor gained ground. Sunnyvale, California-based Advanced Micro Devices Inc. now has more than 20 percent of the market for chips that power PCs.

In addition to the 1,000 management reductions in July, Intel announced the sale of two communications units that will shave 2,000 more people from the payroll.

``You're probably going to see them go back to the core business, the company they were three or four years ago,'' said Chris Caso, an analyst at Friedman Billings Ramsey & Co. in New York. He raised his rating on Intel this week to ``strong buy.''

To win back sales, Intel this week introduced a version of its Xeon server chip five months ahead of schedule. Otellini has accelerated the introduction of products and says his Xeon chips are faster and more efficient that Advanced Micro's Opteron.

In the second quarter, Intel reported its biggest profit drop in more than four years and said it is unlikely to meet its 2006 sales forecast. Revenue will probably decline more than the 3 percent Intel forecast in April, the company said last month.

`Low End'

More job reductions may reverse a hiring binge that has added more than 20,000 employees since 2003, according to Morgan Stanley's Edelstone, who is based in San Francisco. He predicts 15,000 to 20,000 cuts including previously announced reductions.

``Ten thousand would be at the low end of everyone's expectations,'' said Doug Freedman, an analyst at American Technology Research in San Francisco who has a ``buy'' rating on Intel's shares and doesn't own any.

Before this year, Intel last announced a round of workforce cuts in 2002, when the company shed 4,000 jobs. Intel ended 2005 with 99,900 workers, according to a regulatory filing. That was a gain from 79,700 in 2003.

To contact the reporter for this story: Ian King in San Francisco at ianking@bloomberg.net

Last Updated: September 1, 2006 11:01 EDT

 
At September 01, 2006 6:21 PM, Blogger Posty said...

"'It would be seen as lame if Intel does less than 10,000,' said David Wu, an analyst at Global Crown Capital in San Francisco."

You know what's lame? Keeping people on edge since April is lame.

Having worthless stock options (a supposedly important part of our total compensation) for the last six years, partly thanks to people like Mr. Wu above, is lame.

The fact that constructive confrontation and being open and direct, two core values at Intel, seem to have died is lame.

Asking people to not worry about things and concentrate on their jobs, while stressing them out with countless open forums and webcasts that provide zero new information is lame.

Denying the reports from months ago, which said that 10000+ people were going to be let go, and now proving those reports were true all along is lame.

And most of all, letting thousands of good workers go while the management who went on hiring sprees, and who caused this whole thing in the first place, just gets shuffled around in a game of musical chairs is lame.

That's what's lame. That, and Mr. Wu, who thinks messing with the lives of 10000 people is not enough, and "lame". Maybe all the people who will get fired in the next few weeks should give him a call at (415) 402-0518, letting him know what they think.

I'm sick and tired of this. Maybe being laid off wouldn't be so bad after all.

Did you send the "Great Place to Work" part of your badge to Paul Otellini yet? Yes, I know it was intended as a joke, but maybe it will serve as a reminder of something that doesn't seem to be there anymore.

 
At September 02, 2006 6:29 AM, Anonymous salespeep said...

posty,

All we can do is pray that Paul isn't another lame duck politician desperate to make his mark for the sake of appeasing analysts who hold little or no regard for our values, corporate has been blighted with them for too many years now. In emea we still have more than our fair share. I expect we will all soon be on one side of the fence or another, but I bet that we will still have the same lame duck managers that lead us into this mess sitting pretty come the end of the year. As you can guess I'm one of those hoping to get shipped out and paid off, I'm just fed up being fed a constant diet of BS and excuses for the excesses of managerial indulgence I suffer daily.

 
At September 02, 2006 7:07 AM, Anonymous stockticker said...

UPDATE: Intel Reportedly To Announce Job Cuts Of Up To 20,000



By Dow Jones

SAN FRANCISCO (Dow Jones) -- Intel Corp. is reportedly expected to announce as early as next week that it's cutting 10,000 to 20,000 jobs from its worldwide workforce of 100,000.

The Wall Street Journal and CNET News.com reported that Intel could publicly disclose the cuts after market close on Tuesday.

Earlier this year, Intel (INTC) began a companywide restructuring in an effort to refocus on core chip operations and revive growth. Intel is betting on a product overhaul and PC price cuts to stave off market losses to smaller rival Advanced Micro Devices Inc (AMD) .

In late July, Intel posted its lowest sales and profit figures since 2004 and offered a weaker-than-expected sales forecast for the quarter ending in September.

Shares of Intel were up 1.7% at $19.91 in pre-market trading Friday. They closed Thursday at $19.57, down 27 cents, well off the 52-week high of $27.49.

Already, Intel has unveiled plans to eliminate 1,000 management positions worldwide, and the chipmaker sold off its struggling cellular processor line to Marvell Technology Group. More layoffs and asset sales had been expected once Intel Chief Executive Paul Otellini completed his top-to-bottom review.

The latest job reductions are likely to weigh heavily on marketing staff, according to CNET, which reported the job cuts could reach 10,000. The Journal reported the job cuts could reach 20,000.

Chuck Mulloy, an Intel spokesman, would not comment on what he characterized as speculation, The Journal reported. Yet Mulloy indicated that results of an internal efficiency study, under way since the spring, would at least be announced by the end of September.

"We have committed to reporting on the restructuring before the end of the third quarter," The Journal quoted Mulloy as saying. "We are on track to do that."


(END) Dow Jones Newswires
09-01-060910ET
Copyright (c) 2006 Dow Jones & Company, Inc.

 

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