17,500 people may lose their jobs within 2024 from this one company alone. Why?

17,500 people may lose their jobs within 2024 from this one company alone. Why?

Article in SCMP.com Intel said on Thursday it would cut more than 15 per cent of its workforce, some 17,500 people, and suspend its dividend starting in the fourth quarter as the chip maker pursues a turnaround focused on its money-losing manufacturing business.

It also forecast third-quarter revenue below market estimates, grappling with a pullback in spending on traditional data centre semiconductors and a focus on AI chips, where it lags rivals.

Shares of Santa Clara, California-based Intel slumped 20 per cent in extended trade, setting the chip maker up to lose more than US$24 billion in market value. The stock had closed down 7 per cent on Thursday, in tandem with a plunge in US chip stocks after a conservative forecast from Arm Holdings on Wednesday.

AI powerhouse Nvidia and smaller rival AMD ticked up after hours, underscoring how well-positioned they were to take advantage of the AI boom, and Intel’s relative disadvantage.

Lots more details in the article here: Article in SCMP.com

No details in the article for Malaysian employees of Intel

Let’s wish that Malaysians would be spared since the cost of operations in Malaysia is definitely one of the lowest where tech companies are concerned. I meant for the type of talents they need and not the manufacturing operators. For these I think we have lost this to cheaper countries a long time ago and I also don’t think this is the reason for Intel not doing well yeah.

It’s not the cost of operations which is causing Intel the current problem. It’s the technology part, the R&D part, the right move part and more but certainly not because of the additional savings one can get from hiring someone in the manufacturing floor in a more expensive country versus a cheaper one. The fault does not lie with the ones who are just doing what they are asked to do day in and day out.

Hopefully everyone being let go can then move on to the others which are doing better

Many technology companies are doing well even if there are others which are struggling. This is the same for all industries. A sudden growth in one company will either be due to a new product or it could be that they are more competitive versus their close competitors with a new process and has gotten more customers with a lower price but with the same quality. This happens all the time and this is why the industry is so vibrant.

Be prepared with the right skills versus just doing the same thing and we should be all right. The last thing is to believe that the company we work for will always be successful until the day we retire. That’s a false hope these days. Companies do die and companies do rise from the ashes. This is the world we live in today.

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