It's all over the news...Intel is expected to update on the efficiency exercise in the next couple of days. Joe Osha is predicting Intel will dispense with it's flash business. I'm inclined to believe he's on the right track. I actually think they will follow AMD and spin off their flash business like Spansion. Or sell it to Micron. I also think some of their other non-core businesses like Motherboards may be cut or sold thereby removing thousands of heads from their cost structure while removing loss making or low margin businesses. Probably significant parts of their money losing communications business into which they have poured billions of $s with never a profit will be trimmed. Though I think the wi-fi and Wimax related pieces are too strategically important and will stay.
At the end of the day, it's sad that thousands of people will be in flux or jobless. I hope Intel's board closely scrutinises exactly who's competency is in question that has resulted in the trauma for so many and "reward" them appropriately.
We'll come back and look at this once the details are out.
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Updated post Intel announcement
Ok - so having heard the news I think Otellini definitely needs his reward. Instead of taking some of the hard decisions that would have brought Intel's focus back, he took the weenie route and decided to lay off half the people who were hired in the last 2 years while he was COO and then CEO. I really don't have much to say. Nett result of Intel's efficiency and structure project as reported to "mama" after getting home from school today:
1. Sold some loss making businesses - DUH
2. Fired lots of people we hired in the first place - TSK...TSK
3. Skinned my knee when someone in the board room pushed me over but I didn't cry - YOU BRAVE BRAVE BOY!
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6 comments:
Intel cut 10,500 workers. 20 Conroes feed a worker for a month. 10K workers need 200,000 Conroes. Intel can't sell enough conroes to feed them.
I did some research, Intel employs about 35K people in US, the others are in lower pay regions. 20 Conroes, even if the profit is only $5K is enough for one Intel worker.
What sort of idiot evaluates the future of an entire corporation based on one specific product offering versus employee wages?
How many hundreds of products, including legacy technology is Intel STILL selling? How much revenue is generated by other sources that they own?
Even figure that the top, say, conservatively 10% of Intel earns executive wages far above a few thousand dollars a month. You cannot base anything on such simple factors in a huge equation. It would be like leaving the C out of e=mc^2.
Well anonymous - let me introduce you to the real Sharikou. He's a smart guy with an AMD fetish. His blog can be found at:
http://sharikou.blogspot.com
I'm already quite familiar with Sharikou's rants and raves.
You'd only want to pay attention to his nonsense if you're an anti-Intel fanatic. His little legions of fanatics is quite amusing.
I went to his blog for the outrageousness of it all and to occasionally challenge his audacity, but now I'm really tired of it and just want to read something sane along the same topic lines.
Good blog, 180, I hope this becomes successful enough for you to eliminate the 'Sharikou' from the name some day. ;)
Oh, a suggestion for you:
When I'm scrolling through the postings I've noticed that it's easy (for me anyways) to mistake "Sharikou, ph.d" for "sharikou 180" if you've both posted close to each other.
Maybe change your handle to "180" or something? I'd hate to confuse a sane post with an in-sane post if you know what I mean?
Just a thought.
What sort of idiot evaluates the future of an entire corporation based on one specific product offering versus employee wages?
That sort of idiot is called Sharikou or Sharifraud as I like to call him... her? Who knows. The important thing to note is that SHarikou is an angry hack with an "I hate Intel" agenda.
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