Gotta hand it to Pat Gelsinger milking America out of $50B for homemade chips while the company continues to bleed talent, money, patience.

CEO can take a bigger cut that 25%. Is this to avoid layoffs?

My guess is they'll lay off 10,000-15,000 over the coming 18 months to hit $10B annual savings.

Honestly with their stock so beaten down, not sure why not just cut dividend by half. $5b to $6b a year in dividends.

They did this so they could pay the dividend.

Almost every company, even during layoffs, throws out a net to see if they can snag a big fish that decided to finally wander in new waters.

evan_aggie said:

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Gotta hand it to Pat Gelsinger milking America out of $50B for homemade chips while the company continues to bleed talent, money, patience.

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25%, what a joke. I believe he made $175M in 2021. I know a lot of that was from his package that they had to give him to leave VMWare, but sheesh.

So what happens when they can't build their new Ohio plant? Or worse yet, China waits until plant produces first chip and drops global pricing by 30%+?

This looks very similar to what several oil and gas companies were doing a couple of years ago during the downturn.

Aggie95 said:

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So what happens when they can't build their new Ohio plant? Or worse yet, China waits until plant produces first chip and drops global pricing by 30%+?

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A good friend of mine works on their construction group. They shelved his chip plant project and put him in maintenance. He is now coming back to pipelining.

When a company goes in the dumper, like Intel has, it isn't just the head guy who isn't producing.

Tough spot for a once great company..and, I'm a long term stock holder hoping they turn it around.

Nm

i think that you meant 2020 :-)

Ag92NGranbury said:

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i think that you meant 2020 :-)

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I'm an idiot. Ignore me and carry on

Spent some good years at Intel. By 2015, it was obvious they lost their process mojo. It is almost a Motorola level collapse that started from the top.

All my inside Intel news comes from a competitor's point of view for the last five years. Hopefully, it's not as bad as it seems.

I honestly wouldn't be surprised to see more companies announce lower salaries for management in the coming months on top of continued layoffs. Overall the run up in tech salaries fueled by a near endless supply of VC funding is long-term unsustainable. A lot of companies were able to raise before funding dried up and should be sitting on 12+ months of runway. Once that starts to dry up you'll see more labor cost cuts as companies that are left for dead by their investors start to do anything they can to stay in business another day. I expect you'll also see more M&A from sponsors and we'll-capitalized strategics coming in to pick over the scraps.

jh0400 said:

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I honestly wouldn't be surprised to see more companies announce lower salaries for management in the coming months on top of continued layoffs. Overall the run up in tech salaries fueled by a near endless supply of VC funding is long-term unsustainable. A lot of companies were able to raise before funding dried up and should be sitting on 12+ months of runway. Once that starts to dry up you'll see more labor cost cuts as companies that are left for dead by their investors start to do anything they can to stay in business another day. I expect you'll also see more M&A from sponsors and we'll-capitalized strategics coming in to pick over the scraps.

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I wouldn't expect to see salary cuts to public tech companies. Frankly, that is the kiss of death for morale and forward hiring. Startup / Private may go that ways as they can entice with stock options. IMO, Intel is hosed unless they completely change mgmt. Top tier employees will leave and they won't be able to fill with same caliber talent as nobody wants to work where you get salary cuts. Doomed

QBCade said:

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jh0400 said:

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I honestly wouldn't be surprised to see more companies announce lower salaries for management in the coming months on top of continued layoffs. Overall the run up in tech salaries fueled by a near endless supply of VC funding is long-term unsustainable. A lot of companies were able to raise before funding dried up and should be sitting on 12+ months of runway. Once that starts to dry up you'll see more labor cost cuts as companies that are left for dead by their investors start to do anything they can to stay in business another day. I expect you'll also see more M&A from sponsors and we'll-capitalized strategics coming in to pick over the scraps.

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I wouldn't expect to see salary cuts to public tech companies. Frankly, that is the kiss of death for morale and forward hiring. Startup / Private may go that ways as they can entice with stock options. IMO, Intel is hosed unless they completely change mgmt. Top tier employees will leave and they won't be able to fill with same caliber talent as nobody wants to work where you get salary cuts. Doomed

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The reality in tech is that more people will be able to keep their jobs at a lower rate, or there will be fewer people employed at the inflated rates that came from the last two years. Privates are in the same river, different boat. In order to entice new hires they will need to bring down their 409a valuations which penalize people that have been there a while. At IPO or change of control it's likely that there will be a middle tranche of employees that are underwater on their options if they were granted in 2020-21. There really is no good outcome here, but one way or the other the labor market will find it's way back to some sort of equilibrium.

jh0400 said:

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QBCade said:

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jh0400 said:

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I honestly wouldn't be surprised to see more companies announce lower salaries for management in the coming months on top of continued layoffs. Overall the run up in tech salaries fueled by a near endless supply of VC funding is long-term unsustainable. A lot of companies were able to raise before funding dried up and should be sitting on 12+ months of runway. Once that starts to dry up you'll see more labor cost cuts as companies that are left for dead by their investors start to do anything they can to stay in business another day. I expect you'll also see more M&A from sponsors and we'll-capitalized strategics coming in to pick over the scraps.

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I wouldn't expect to see salary cuts to public tech companies. Frankly, that is the kiss of death for morale and forward hiring. Startup / Private may go that ways as they can entice with stock options. IMO, Intel is hosed unless they completely change mgmt. Top tier employees will leave and they won't be able to fill with same caliber talent as nobody wants to work where you get salary cuts. Doomed

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The reality in tech is that more people will be able to keep their jobs at a lower rate, or there will be fewer people employed at the inflated rates that came from the last two years. Privates are in the same river, different boat. In order to entice new hires they will need to bring down their 409a valuations which penalize people that have been there a while. At IPO or change of control it's likely that there will be a middle tranche of employees that are underwater on their options if they were granted in 2020-21. There really is no good outcome here, but one way or the other the labor market will find it's way back to some sort of equilibrium.

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Yes, for the majority of companies it will mean fewer employees total. Or, they will layoff higher comped employees and rehire at lower wage. My point is that giving out pay cuts kills morale and ability to hire.

QBCade said:

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jh0400 said:

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I honestly wouldn't be surprised to see more companies announce lower salaries for management in the coming months on top of continued layoffs. Overall the run up in tech salaries fueled by a near endless supply of VC funding is long-term unsustainable. A lot of companies were able to raise before funding dried up and should be sitting on 12+ months of runway. Once that starts to dry up you'll see more labor cost cuts as companies that are left for dead by their investors start to do anything they can to stay in business another day. I expect you'll also see more M&A from sponsors and we'll-capitalized strategics coming in to pick over the scraps.

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I wouldn't expect to see salary cuts to public tech companies. Frankly, that is the kiss of death for morale and forward hiring. Startup / Private may go that ways as they can entice with stock options. IMO, Intel is hosed unless they completely change mgmt. Top tier employees will leave and they won't be able to fill with same caliber talent as nobody wants to work where you get salary cuts. Doomed

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Boggles my mind they'd cut salary for everyone vs just drop the bottom 10%. It would be such an Intel move to do that in the name of fairness and equity for all. Just a terrible decision all around.

evan_aggie said:

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Boggles my mind they'd cut salary for everyone vs just drop the bottom 10%. It would be such an Intel move to do that in the name of fairness and equity for all. Just a terrible decision all around.

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QFT