More layoffs at Intel?

[workshop35]

Looks like Intel might not be done with workforce reductions...

https://www.reuters.com/technology/intel-cut-over-20-workforce-bloomberg-news-reports-2025-04-23/

 

[Aurelius]

I know Intel needs to get back to its roots before it implodes, but damn... the reported 21,000 jobs is a lot. That's going to hurt many families. Intel is supposed to report its earnings at market close on April 24th, so we'll likely hear about the layoffs then.

I'll add this: it's still odd to see people arguing that Apple made a mistake by ditching x86 for in-house ARM chips in light of this. Apple was already running into a wall with Intel's 14nm+++++++ paralysis when it switched; imagine if it kept using Intel and had to wonder if its main CPU supplier would still be around in a few years' time. I'm sure that's partly why Dell, HP, Lenovo and other normally Intel-loyal brands have invested more in systems using AMD and Qualcomm chips — these companies could literally collapse if Intel fails and they don't have a Plan B.

 

[Lakados]

Looks like they are shedding a lot of middle managers. I hate that people are loosing their jobs, but if Intel had been operating efficiently then they wouldn’t be in this mess to begin with so sadly this is a long time coming.

 

[Lakados]

I know Intel needs to get back to its roots before it implodes, but damn... the reported 21,000 jobs is a lot. That's going to hurt many families. Intel is supposed to report its earnings at market close on April 24th, so we'll likely hear about the layoffs then.

I'll add this: it's still odd to see people arguing that Apple made a mistake by ditching x86 for in-house ARM chips in light of this. Apple was already running into a wall with Intel's 14nm+++++++ paralysis when it switched; imagine if it kept using Intel and had to wonder if its main CPU supplier would still be around in a few years' time. I'm sure that's partly why Dell, HP, Lenovo and other normally Intel-loyal brands have invested more in systems using AMD and Qualcomm chips — these companies could literally collapse if Intel fails and they don't have a Plan B.

If Intel disappeared tomorrow nothing AMD and TSMC could do would cover the spread, TSMC lacks the manufacturing capacity to meet that demand.
Intel currently has an inferior product, no arguments there from anybody but its good enough for what it is, it just costs too much for what it delivers.

Intel is management heavy, it drives up their costs at each and every step which adds to their product costs. Intel needs to slim down so they can actually price their components competitively. If their processors were 2/3’rds of their current prices things would be a lot different. But charging top dollar for second place is not a viable long term strategy, TSMC continues to increase their manufacturing capacity which increases AMD supply which further erodes Intels market as it becomes more viable for OEMs to sell AMD products.

Dell might currently sell more Latitudes than AMD could make chips for, but with Arizona coming online, plans to expand it, and talks about another fab some time after 2028 that may not be the case for much longer. And unless Intel gets their costs down and their performance up their supply advantage will mean very little sooner than not.

 

[Aurelius]

If Intel disappeared tomorrow nothing AMD and TSMC could do would cover the spread, TSMC lacks the manufacturing capacity to meet that demand.
Intel currently has an inferior product, no arguments there from anybody but its good enough for what it is, it just costs too much for what it delivers.

Intel is management heavy, it drives up their costs at each and every step which adds to their product costs. Intel needs to slim down so they can actually price their components competitively. If their processors were 2/3’rds of their current prices things would be a lot different. But charging top dollar for second place is not a viable long term strategy, TSMC continues to increase their manufacturing capacity which increases AMD supply which further erodes Intels market as it becomes more viable for OEMs to sell AMD products.

Dell might currently sell more Latitudes than AMD could make chips for, but with Arizona coming online, plans to expand it, and talks about another fab some time after 2028 that may not be the case for much longer. And unless Intel gets their costs down and their performance up their supply advantage will mean very little sooner than not.

You're absolutely right about AMD and TSMC. They could race to snap up Intel's assets but would still take a while to retool the fabs. Intel isn't likely to collapse that spectacularly, if it does at all. But diversifying now sure beats having to play that waiting game and reengineering whole PC lineups at the same time.

I wish we could flash forward a few years to see if Lip-Bu Tan's strategy pays off. I'd love to see an Intel that's back to pushing the industry forward. At least it's snapping out of that Microsoft-like "why, of course we'll always lead the market" arrogance.

 

[Lakados]

You're absolutely right about AMD and TSMC. They could race to snap up Intel's assets but would still take a while to retool the fabs. Intel isn't likely to collapse that spectacularly, if it does at all. But diversifying now sure beats having to play that waiting game and reengineering whole PC lineups at the same time.

I wish we could flash forward a few years to see if Lip-Bu Tan's strategy pays off. I'd love to see an Intel that's back to pushing the industry forward. At least it's snapping out of that Microsoft-like "why, of course we'll always lead the market" arrogance.

I would say that OEMs have been diversifying quite significantly over the past few years; they offer far more options with EPIC and Threadripper than ever before. Sadly, AMD has a history of short-ordering OEMs when it comes to laptop chips, and it makes it very difficult for the likes of Dell, HP, and Lenovo to build business-based releases around them, so they tend not to.

IF AMD needs to increase EPYC or Threadripper production, they tend to do so by scaling back Mobile production, they previously did the same when they needed to increase PS5 production; they cut back on Mobile to better meet their contracted obligations with Sony. AMD's mobile chip production seems to consistently get the short end of the stick.
IF AMD improves that, OEM's will gladly increase their AMD offerings, but until AMD does, Intel is the easy and safe bet.

Regarding Desktop options, Intel has one distinct advantage AMD has yet to match or beat: low-power idle states.
EU and California regulations for PC's in office spaces have some very strict low-power and idle power draw requirements, especially on network connected devices, Intel meets them with ease while AMD doesn't unless you use their mobile chips, but as stated above the mobile supply is too erratic to support a wide scale business platform.
With AMD not meeting those requirements, OEMs aren't able to sell them in business offerings to the EU or California, and as they make the bulk of the purchases, it doesn't make sense to do an AMD-based desktop launch for business, and business makes up the majority of desktop purchases.