. . . .“Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate,” he wrote. “Our revenues have not grown as expected — and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low.”
On an adjusted basis, Intel said it expects around $20 billion in cuts this year, $17.5 billion in 2025 and more in 2026.
Excluding the after-hours move, Intel stock has lost 42% of its value so far this year, while the S&P 500 index is up almost 14% in the same period. . . .
Bigger Picture:
You can have a Chinese engineer or an Indian engineer move his desk to California during the design process, and call it a “win” for the economy (Yeah he moved his desk here! We are creating American jobs!")
but the computer and its components will still be built in China or India.
US computer manufacturing basically ended with the dot.com bust. (Taht’s obvious)
What is less obvious is that it has not leveled off but ahs fallen an additional 5% vs Pre-Pandemic.
The cruel truth of math is that a thing that is falling can fall 50% (or 10% or 5%)an unlimited number of times.
We don’t make computers anymore.
We just import engineers to design computers which we will also import.
These days, our only contribution to the process is that we provide the office space and we provide the financing. (But both banking and commercial real estate are in trouble.)
Microsoft Corp. has apparently launched a new round of layoffs a month after it was reported that the company was preparing to lay off hundreds of employees from its Azure cloud business. . . .
In January last year, Microsoft announced that it would lay off about 10,000 employees, or 5% of its workforce, as part of an effort to reduce costs. Those cuts followed smaller rounds of layoffs in July and October of 2022.
