Intel planning for thousands of job cuts, internal sources say

Page 3 - Seeking answers? Join the AnandTech community: where nearly half-a-million members share solutions and discuss the latest tech.

MiddleOfTheRoad

Golden Member
Aug 6, 2014
1,123
5
0
Gaming desktops (and by extension CPUs for gaming desktops) are growing quite quickly, so the very area where you say performance isn't improving/Intel sucks is one in which Intel is seeing quite a lot of success.

In areas where consumers actually care about performance, Intel is doing well. It's segments/sub-segments where performance/features don't matter where Intel/the rest of the industry is doing poorly.

Reality doesn't agree with your imagination:
Look at the trend in Mac sales over the last three years. It's been growing quite nicely.

Yeah, sure. Intel is doing well. Firing 12,000 employees "is doing well."

Yeah, Mac sales are also totally "growing quite nicely" as you put it:
http://www.cnbc.com/2015/10/09/apples-mac-sales-suffer-steep-drop-in-sales-wsj.html
http://www.computerworld.com/articl...e-smallest-ever-portion-of-total-revenue.html

/sarcasm off
 
Mar 10, 2006
11,715
2,012
126
Yeah, sure. Intel is doing well. Firing 12,000 employees "is doing well."


You misread my comment. I said that in areas in which performance matters (gaming, servers, etc.) Intel is doing well. In areas in which consumers aren't necessarily hungry to keep upgrading (i.e. most PC owners), sales are sluggish.

Please read my comments more carefully before going off.


I literally pulled a table from Apple's form 10-K filing to show you that Mac revenue grew 9% in the company's last fiscal year and 16% in the fiscal year prior. This is the best information that you're going to get about how a business is doing.
 

MiddleOfTheRoad

Golden Member
Aug 6, 2014
1,123
5
0
You misread my comment. I said that in areas in which performance matters (gaming, servers, etc.) Intel is doing well. In areas in which consumers aren't necessarily hungry to keep upgrading (i.e. most PC owners), sales are sluggish.

I didn't misread anything. It's a bit difficult to praise a girl's new pimple cream when she's currently dying of cancer. That's more or less what you just did.

Intel's got some pretty dire problems that need to be addressed. Mobile has lost over 2 Billion, with a capital B.
 
Last edited:

videogames101

Diamond Member
Aug 24, 2005
6,777
19
81
Yeah, sure. Intel is doing well. Firing 12,000 employees "is doing well."

Yeah, Mac sales are also totally "growing quite nicely" as you put it:
http://www.cnbc.com/2015/10/09/apples-mac-sales-suffer-steep-drop-in-sales-wsj.html
http://www.computerworld.com/articl...e-smallest-ever-portion-of-total-revenue.html

/sarcasm off

Intel's got some pretty dire problems that need to be addressed. Mobile has lost over 2 Billion, with a capital B.


Yeah, but why didn't you mention that Intel made $2 billion in profit, up 3% YoY?

Just because financial idiots don't value ANYTHING except unsustainable double-digit revenue growth doesn't mean a company isn't doing well.


But this is really bad for the folks in the industry, there aren't 12k job openings just waiting for the guys who end up out of work. I wonder which locations are closing/significantly scaling down.
 
Last edited:
Mar 10, 2006
11,715
2,012
126
I didn't misread anything. It's a bit difficult to praise a girl's new pimple cream when she's currently dying of cancer. That's more or less what you just did.


No, "dying of cancer" is what AMD is doing. Intel has serious issues that it needs to work out, but the company is still raking in billions in profit and is working to address those issues.

Here's Intel's problem: it depends heavily on the PC market and no matter what products it tries to bring to bear here, the mainstream customers who drive most of the volume simply aren't upgrading as quickly as they used to, for a variety of reasons.

Those reasons, however, have essentially nothing to do with the quality/performance of Intel's CPUs. If it did, then this would actually be good for Intel and its investors because product problems, given enough time and money (and Intel has a lot of both), can be solved.

Intel can't do much more to fix the PC market, it is what it is. What Intel needs to be able to do is to grow other businesses to the point where their growth rates can collectively offset the structural decline in the PC market. And, of course, Intel needs to do what it can to both:

1. Maintain share within the PC market; and
2. Continue to make tomorrow's products better than today's so that when the time does come for Joe Doe to upgrade, there's something that he's interested in buying.

Intel is doing well with (1) and (2), but these are no substitutes for finding fundamentally new growth areas.

Intel's work to address the real problem is in its investments in Data Center (making sure its CPUs there are the best, investing in other platform level products to increase content/stickiness, investing in software/tools, etc.) and the Internet of Things.

It will take time for those businesses to become large enough to allow Intel to grow even when the PC market plunges, but if they play their cards right, it should be doable.
 
Aug 11, 2008
10,451
642
126
Coincidentally, all these "innovations" have done is drive the consumer to more expensive devices that sacrifice performance for formfactor, i.e. nucs and ultrabooks.
 
Aug 11, 2008
10,451
642
126
No, "dying of cancer" is what AMD is doing. Intel has serious issues that it needs to work out, but the company is still raking in billions in profit and is working to address those issues.

Here's Intel's problem: it depends heavily on the PC market and no matter what products it tries to bring to bear here, the mainstream customers who drive most of the volume simply aren't upgrading as quickly as they used to, for a variety of reasons.

Those reasons, however, have essentially nothing to do with the quality/performance of Intel's CPUs. If it did, then this would actually be good for Intel and its investors because product problems, given enough time and money (and Intel has a lot of both), can be solved.

Intel can't do much more to fix the PC market, it is what it is. What Intel needs to be able to do is to grow other businesses to the point where their growth rates can collectively offset the structural decline in the PC market. And, of course, Intel needs to do what it can to both:

1. Maintain share within the PC market; and
2. Continue to make tomorrow's products better than today's so that when the time does come for Joe Doe to upgrade, there's something that he's interested in buying.

Intel is doing well with (1) and (2), but these are no substitutes for finding fundamentally new growth areas.

Intel's work to address the real problem is in its investments in Data Center (making sure its CPUs there are the best, investing in other platform level products to increase content/stickiness, investing in software/tools, etc.) and the Internet of Things.

It will take time for those businesses to become large enough to allow Intel to grow even when the PC market plunges, but if they play their cards right, it should be doable.

I would argue that they are doing a "good job" of number one because of no competition, and are in fact doing a lousy job of number two. And now that they have abandoned tic toc, the pace of improvements will be even slower.

And if one considers not just x86 devices, but the entire spectrum of computing devices, including phones and tablets, they have lost a huge amount of the market.
 
Mar 10, 2006
11,715
2,012
126
I would argue that they are doing a "good job" of number one because of no competition, and are in fact doing a lousy job of number two. And now that they have abandoned tic toc, the pace of improvements will be even slower.

Along what vector do you believe the pace of improvements will be slower? If anything, the fact that Intel is even doing a Kaby Lake means that the pace of improvements quickens. Imagine if, due to process issues, Intel had just decided to keep Skylake around (because no competition, right?) for another year until it got its issues with 10-nanometer solved?

You know, what Intel did with Haswell when Broadwell was delayed?

With Kaby Lake, Intel is doing a new chipset with more features, IPC should go up (but probably not by much, it is basically Skylake with features that were fused off in Skylake enabled, at least this is what I am told), and the media engine should be much improved (HEVC 10 bit encode/decode, VP9 10bit encode/decode in hardware, etc.).

The process is also tweaked, so don't be surprised to see frequency improve as well in most SKUs.

And if one considers not just x86 devices, but the entire spectrum of computing devices, including phones and tablets, they have lost a huge amount of the market.

Agreed, they should have been in phones.
 
Last edited:
Aug 11, 2008
10,451
642
126
Along what vector do you believe the pace of improvements will be slower?





Agreed, they should have been in phones.

Well, maybe my math is off, but bringing out a new architecture every 3 years instead of every 2 years of the conventional tic/tock seems "slower" to me. Not to mention the generation to generation improvements are steadily decreasing as well.

And yes, the main source of my frustration with the slow pace of improvements is that they could easily take 2 steps that would increase performance immensely: make edram standard on a wide varitey of cpus (if they are *really* serious about igpu performance on something besides a 1500 dollar plus ultrabook), and ...wait for it.....mainstream hex core. I know you and Shintai love HEDT, but come on, it has been almost 10 years, and what 4 die shrinks since we got an increased core count on the mainstream architecture.
 

CHADBOGA

Platinum Member
Mar 31, 2009
2,135
832
136
and ...wait for it.....mainstream hex core.
Cannonlake looks likely to address this

I know you and Shintai love HEDT, but come on, it has been almost 10 years, and what 4 die shrinks since we got an increased core count on the mainstream architecture.

10 years ago, Quads weren't a mainstream choice for consumers any more than Intel's current HEDT range is today.
 

Abwx

Lifer
Apr 2, 2011
11,172
3,869
136
10 years ago, Quads weren't a mainstream choice for consumers any more than Intel's current HEDT range is today.

Not exactly 10 years but almost as the first sub 100$ quad (99$...) was the Athlon X4 620 in september 2009, so quads were mainstream since at least 2008.

If the former pace was to double the perf/throughput every 24 months then we should have the equivalent of a 64 cores AX4 or C2Q at 99$ in one year...
 

CHADBOGA

Platinum Member
Mar 31, 2009
2,135
832
136
Not exactly 10 years but almost as the first sub 100$ quad (99$...) was the Athlon X4 620 in september 2009, so quads were mainstream since at least 2008.

Thanks for confirming my post that 10 years ago, Quads weren't mainstream.
 

nerp

Diamond Member
Dec 31, 2005
9,866
105
106
This topic is best explained by the economist, not the hardware enthusiast. If you find yourself trying to argue against what Arachnotronic is saying, you're wasting your time.
 

Abwx

Lifer
Apr 2, 2011
11,172
3,869
136
Thanks for confirming my post that 10 years ago, Quads weren't mainstream.

10 years ago there was no quad, so they indeed couldnt be mainstream, what matter actually is the pace of evolution.

Quads were released end of 2006/early 2007, they got to 99$ in less than 3 years, as said if this pace had been maintained then we would have CPUs 20x more powerfull in 2017 at the latest.

If we look at the evolution a current phablet CPU has about the throughput of a 2007 dual core, enough to perform most of a PC tasks and that s why those latter are losing some ground, that is, because PC CPUs evolution is stuck with 5-10% improvement/2 years instead of 100%/2years like they formerly did, and like the phablets are doing currently.

This topic is best explained by the economist, not the hardware enthusiast. If you find yourself trying to argue against what Arachnotronic is saying, you're wasting your time.

The economists will tell you that PC CPUs is a mature market, at least in its current form and offerings.

Because the hardware is no more progressing the softwares have no reason to be optimised for more than a handfull of cores, but if there was a relevant offering editors would update their softs, after all Cinema 4D or 7 Zip can use 32 or even 64 cores.
 
Last edited:

senseamp

Lifer
Feb 5, 2006
35,787
6,195
126
They can probably cut twice as much, easily. I am not sure why they need even 50000 people. I mean they mainly make CPUs, which improve incrementally. Process improvements are harder to come by with marginal gains on single threaded performance. Attempts to expand into mobile have flopped, and even if they succeeded, margins are pitiful compared to their bread and butter WinTel money. You don't need a lot of people to milk the cash cow and extract rent from the x86 monopoly, and make incremental improvements.
 

Killrose

Diamond Member
Oct 26, 1999
6,230
8
81
Runaway! Hide!! ZEN is coming!!

But seriously, 12,000 jobs is some serious cuts. Hopefully they are overseas cuts and not many in the USA. That will be some serious affects to a lot more than just 12,000 Intel employees. Sub-vendors and local economy's are going to suffer no matter where they are located.
 

videogames101

Diamond Member
Aug 24, 2005
6,777
19
81
They can probably cut twice as much, easily. I am not sure why they need even 50000 people. I mean they mainly make CPUs, which improve incrementally. Process improvements are harder to come by with marginal gains on single threaded performance. Attempts to expand into mobile have flopped, and even if they succeeded, margins are pitiful compared to their bread and butter WinTel money. You don't need a lot of people to milk the cash cow and extract rent from the x86 monopoly, and make incremental improvements.

I would say that the vast majority don't do any "CPU Design" per se, but do process development, standard cell development, validation, layout, test, debug, software, system level specification, technical writing, marketing, logistics, manufacturing, etc. etc. Then multiply all that by 2 for the GPU side of things, then add a good amount of pork spending along with admin and management for a multi-billion dollar company and you get 100k employees...

Or something... yeah i have no idea how they employ 100k people
 
Last edited:

NTMBK

Lifer
Nov 14, 2011
10,269
5,134
136
Hopefully one of the "competitive gaps" that Intel fills will be gaming. Hopefully we'll see a Devil's Canyon style gaming-focused SKU in Kabylake/Broadwell-E. Or perhaps a return of a Pentium Anniversary-style cheap overclocker.
 
sale-70-410-exam    | Exam-200-125-pdf    | we-sale-70-410-exam    | hot-sale-70-410-exam    | Latest-exam-700-603-Dumps    | Dumps-98-363-exams-date    | Certs-200-125-date    | Dumps-300-075-exams-date    | hot-sale-book-C8010-726-book    | Hot-Sale-200-310-Exam    | Exam-Description-200-310-dumps?    | hot-sale-book-200-125-book    | Latest-Updated-300-209-Exam    | Dumps-210-260-exams-date    | Download-200-125-Exam-PDF    | Exam-Description-300-101-dumps    | Certs-300-101-date    | Hot-Sale-300-075-Exam    | Latest-exam-200-125-Dumps    | Exam-Description-200-125-dumps    | Latest-Updated-300-075-Exam    | hot-sale-book-210-260-book    | Dumps-200-901-exams-date    | Certs-200-901-date    | Latest-exam-1Z0-062-Dumps    | Hot-Sale-1Z0-062-Exam    | Certs-CSSLP-date    | 100%-Pass-70-383-Exams    | Latest-JN0-360-real-exam-questions    | 100%-Pass-4A0-100-Real-Exam-Questions    | Dumps-300-135-exams-date    | Passed-200-105-Tech-Exams    | Latest-Updated-200-310-Exam    | Download-300-070-Exam-PDF    | Hot-Sale-JN0-360-Exam    | 100%-Pass-JN0-360-Exams    | 100%-Pass-JN0-360-Real-Exam-Questions    | Dumps-JN0-360-exams-date    | Exam-Description-1Z0-876-dumps    | Latest-exam-1Z0-876-Dumps    | Dumps-HPE0-Y53-exams-date    | 2017-Latest-HPE0-Y53-Exam    | 100%-Pass-HPE0-Y53-Real-Exam-Questions    | Pass-4A0-100-Exam    | Latest-4A0-100-Questions    | Dumps-98-365-exams-date    | 2017-Latest-98-365-Exam    | 100%-Pass-VCS-254-Exams    | 2017-Latest-VCS-273-Exam    | Dumps-200-355-exams-date    | 2017-Latest-300-320-Exam    | Pass-300-101-Exam    | 100%-Pass-300-115-Exams    |
http://www.portvapes.co.uk/    | http://www.portvapes.co.uk/    |