News Intel allegedly planning more Oregon layoffs — new report says retreating operation could become a liability to the state

[Admin]

The Intel Oregon workforce is down to its lowest point in more than a decade, but there may be more cuts on the way.

Intel allegedly planning more Oregon layoffs — new report says retreating operation could become a liability to the state : Read more

 

[dalek1234]

First you trim the fat, then the muscle, and lastly the bone. Which stage is Intel at? They might have invented a new stage. Trimming The Brain

 

[magbarn]

First you trim the fat, then the muscle, and lastly the bone. Which stage is Intel at? They might have invented a new stage. Trimming The Brain

That's been going on for awhile already. Intel is dead man walking. Has the stench of other industry has beens that are either dead or shadows of their former selves like DEC, IBM, and SGI. Only government provided life support is going to keep them around.

 

[Roland Of Gilead]

Whilst we have to put up with throwaway remarks sometimes, the harsh reality is that Intel employees will lose their jobs. The local economy will suffer majorly, as will secondary jobs for the other things Intel need doing on site. It's quite sad IMO. Those being sacked aren't the ones that have caused this situation for Intel. Yet, they have no say in how things will pan out. Low hanging fruit and all that. I'd be plenty p***ed with where this going.

I fear these won't be the last cuts either. There is more pain on the way.

 

[helper800]

Intel needs to stay afloat. The sins of the past are baring their fangs and people suffer. The company removed its brain when they ousted the engineer for a bean counter, and like the bean counters before Gelsinger, may bring the company to ruin. Brian Krzanich and Bob Swan were the beginning of the troubles for Intel which led to the problems of today. Lets hope the new bean counter knows what they are doing.

 

[Pierce2623]

Well…. Intel will continue to fail as long they continue to empower the bean counters over the engineers.

 

[mikeebb]

Intel sort of got used to being the go-to for everything, but that model died a long time ago. What we see now is the long tail of that, though with a money guy leading the cleanup it's like to be poorly focused and cause further fundamental damage. The main issue, as I see it (horrible pun alert), is lack of focus.

The competitors mentioned in the article have focus: nVidia on ultimate performance for the *coin AI folks (nearly unlimited markets right now, that they have an spend a lot of money on maintaining a lead in) and spillover from that for monied hobbiests. They dabble, at best, in general-use markets, and are mostly fabless. TSMC is the best at what they do: produce chips; they are very focused on that market, and even Intel has used their services at times.

What is Intel focused on? Endless minor iterations (and sometimes actual improvements) on x86? Also-ran graphics products and experimenter-level AI stuff? The former has been their bread-and-butter for so many years that the other stuff is just in the back of the bus riding along from my view looking at Tom's and other publications. Not sure a Money Guy will fix that, but you need a Money Guy to clear out the closets sometimes; as long as there is some engineering left when they're done, appropriate for a market they can be competitive in, if not dominate, with the remaining resources. No matter what, though, Intel will be a shadow of its former self in the near future, hopefully refocused on modern markets and making money on what's left. If they can't do that, we'll probably see a breakup or liquidation in the not-very-long-term. Unfortunately, that'll probably result in handing the general CPU business, or what's left of it, to AMD and Qualcomm.

I see Micron as a sort of example. Their business is memory, pure and simple. They operate on a way smaller scale than the other Big Names in the memory business (which are also, usually, smallish divisions of much bigger companies - with access to resources Micron doesn't). They *should* have seen China et al eat their lunch. Somehow, they didn't. They just have generally better product than the others, at a slightly but not much higher price. Quality and superior product, at the right (not the cheapest) price, can sell. How can Intel execute that kind of move?

 

[joeer77]

Sold my Intel stock this week. Bought AMD. Still made 22% since last August.

In Oregon we pay 9% income tax. When Intel dies, Oregon dies and she is already dying. Especially in Portland.

Nike is not enough tax revenue to fund the state. Logging and fishing industry is not enough either. The NVIDIA and Amazon data centers gobbling up the land in Hillsboro will not bring in enough tax revenue to matter.

Get it together Intel. Take some EUV risks. Get your yield up.

 

[helper800]

Sold my Intel stock this week. Bought AMD. Still made 22% since last August.

In Oregon we pay 9% income tax. When Intel dies, Oregon dies and she is already dying. Especially in Portland.

Nike is not enough tax revenue to fund the state. Logging and fishing industry is not enough either. The NVIDIA and Amazon data centers gobbling up the land in Hillsboro will not bring in enough tax revenue to matter.

Get it together Intel. Take some EUV risks. Get your yield up.

Did you get the long term investment tax reduction? Seems like if you kept the stock until August this year you would have paid less capital gains on the 22% profit.

 

[redgarl]

Did you get the long term investment tax reduction? Seems like if you kept the stock until August this year you would have paid less capital gains on the 22% profit.

Not if it is in a registered account. You need to have a lot of Assets for someone in the middleclass to really invest in stocks outside of ROTH IRA and 401k.

 

[redgarl]

Intel is right now in a dead spiral.

They cannot maintain their business model because they don't make enough revenue because of strong competition.

If they cannot achieve it with the actual workforce, imagine what they are going to face with a smaller workforce...

Intel will lose more and more momentum to try to maintain a business model that will generate even less revenue and will prevent them for any kind of leadership in the market.

 

[helper800]

Not if it is in a registered account. You need to have a lot of Assets for someone in the middleclass to really invest in stocks outside of ROTH IRA and 401k.

Long term and short term capital gains taxes are applicable to everyone in the USA, not just people with registered accounts or rich people. Everyone who has access to a phone or PC with internet connection and money to spend can start investing. To say poor or middle class individuals cannot invest is uninformed at best.

 

[thestryker]

Pointing at other companies who are more profitable and using that as an excuse for culling employees is hilariously mercenary. Intel has been below both in employees since Gelsinger's last round of layoffs and the gap has only gotten larger.

TSMC is the biggest contract foundry company in the world cutting doesn't help you catch up. Meanwhile nvidia is the most valuable company in the world because they're riding a technology bubble which is also helping propel TSMC.

Also as a side note: I'm not sure why anyone thinks Intel cannot afford their own operations. They had write downs which caused a huge loss, but other than that their sin is not being "profitable enough".

 

[jg.millirem]

As a former Intel employee who had a miserable time working there, and a Portland, Oregon resident, and someone newly retired trying to live a modest life, I hate the whole situation. Oregon will raise already high income taxes on everyone to try to compensate for the hole Intel is leaving behind. As a homeowner, county government will probably continue soaking us even worse in property taxes. Death spiral is right. Probably time to get out of Oregon.

What a blight Intel is. Tax the rich.

 

[joeer77]

As a former Intel employee who had a miserable time working there, and a Portland, Oregon resident, and someone newly retired trying to live a modest life, I hate the whole situation. Oregon will raise already high income taxes on everyone to try to compensate for the hole Intel is leaving behind. As a homeowner, county government will probably continue soaking us even worse in property taxes. Death spiral is right. Probably time to get out of Oregon.

What a blight Intel is.

This guy gets it. Question is where to move?

 

[joeer77]

Did you get the long term investment tax reduction? Seems like if you kept the stock until August this year you would have paid less capital gains on the 22% profit.

Per IRS rules you have to keep the stock for 1 year for lower capital gains tax so no, I didn't get it.

Intel is reporting their Q2 earnings report July 24. It was not worth the risk to me to wait a couple more weeks when I was already up 22%.

https://finance.yahoo.com/news/earnings-preview-intel-intc-q2-140018257.html

 

[helper800]

This guy gets it. Question is where to move?

Depend on what you want out of life. If they have family where they own their home they could just sell the home and rent somewhere nice through retirement instead to deal with the increased income taxes. If they want lower taxes and don't have family tying them down, they can always move to whatever is the lowest tax cost state for them.

Per IRS rules you have to keep the stock for 1 year for lower capital gains tax so no, I didn't get it.

Intel is reporting their Q2 earnings report July 24. It was not worth the risk to me to wait a couple more weeks when I was already up 22%.

https://finance.yahoo.com/news/earnings-preview-intel-intc-q2-140018257.html

Too bad with the timing then, well either way 22% is 22%. Not going to hate on having to pay a bit more in taxes to secure the profits.

 

[DS426]

Sold my Intel stock this week. Bought AMD. Still made 22% since last August.

In Oregon we pay 9% income tax. When Intel dies, Oregon dies and she is already dying. Especially in Portland.

Nike is not enough tax revenue to fund the state. Logging and fishing industry is not enough either. The NVIDIA and Amazon data centers gobbling up the land in Hillsboro will not bring in enough tax revenue to matter.

Get it together Intel. Take some EUV risks. Get your yield up.

A State that depends too much on a single company is doomed. South Koreans are concerned that Samsung accounts for too much of their economy, so if (when) they get into huge troubles, everyone feels it in the RoK. So I've been told be several individuals when I was there.

 

[HerriganThatsMe]

The headline alleges that Intel is planning more Oregon layoffs, but the story itself says no such thing. Bit sleazy, innit.

 

[thestryker]

The headline alleges that Intel is planning more Oregon layoffs, but the story itself says no such thing. Bit sleazy, innit.

I know it's a lot to expect someone who registers to sling shade to be capable of reading/comprehension, but the headline uses the word "allegedly" and the second sentence of the article is:

Worryingly, the newspaper’s sources have indicated that this isn’t the end for Intel's Oregon job cuts.

 

[SomeoneElse23]

That's been going on for awhile already. Intel is dead man walking. Has the stench of other industry has beens that are either dead or shadows of their former selves like DEC, IBM, and SGI. Only government provided life support is going to keep them around.

Doesn't IBM still have a large mainframe presence in the big corporate world?

 

[SomeoneElse23]

Well…. Intel will continue to fail as long they continue to empower the bean counters over the engineers.

Such is the life of "publicly owned" corporations. "shareholder value" takes precedence over everything.

 

[HerriganThatsMe]

I know it's a lot to expect someone who registers to sling shade to be capable of reading/comprehension, but the headline uses the word "allegedly" and the second sentence of the article is:

Speaking of slinging shade: "Unnamed sources from somebody else's news story worryingly allege - sorry no facts to share" -- thanks for the big scoop, Tom's.

 

[wwenze1]

"Oregon actually modified the tax code to favor Intel’s business, to retain and attract increased investment. That seems to have paid off, until now."

Oh wait, then they have a bargaining chip don't they?

"Keep the jobs or we adjust the tax cuts so we receive the same amount of tax"

 

[Rokinamerica]

"Oregon actually modified the tax code to favor Intel’s business, to retain and attract increased investment. That seems to have paid off, until now."

Oh wait, then they have a bargaining chip don't they?

"Keep the jobs or we adjust the tax cuts so we receive the same amount of tax"

And then they close up in Oregon completely?