Revenue: $12.83 billion vs. $12.94 billion expected, $110M under expectation, and revenue declined 1% year over year in the fiscal second quarter.
Why is this a punchline?
Because their core business, the Client Computing Group that makes PC chips contributed $7.41 billion in revenue, up 9% and right around the $7.42 billion consensus, so that part is doing fine.
But the Intel’s Data Center and Artificial Intelligence unit posted $3.05 billion in revenue. The result was down 3% and lower than the $3.14 billion StreetAccount consensus, which accounts for pretty much all of the decline in expectation.
The shortfall almost entirely is in the Data Center and AI Unit.
For people who does not have the context, intel operates totally differently from big techs. Stack ranking is not a concept there, you can stay 30 years there without having to be worried about be marked as bottom x%. So for meta you can imagine there is 6% cut every year without layoff a single employee.
On the gripping hand, no company can trim 15% of their employees without cutting meat & bone too. They may have well over 15% fat but identifying it quickly is impossible.
> The chipmaker plans to cut 15% of headcount, which was over 125,000 at the end of the second quarter.
https://jobs.intel.com/en/locations ("Creating technology that will improve lives and transform the world is a global effort. Our 131,000 employees work in 65 countries, contributing their diverse perspectives and experiences to our innovative team. Explore our locations and find your perfect fit.")
Whew. That's a lot of jobs. Currently https://layoffs.fyi/ counts 380 tech companies w/ layoffs 109,297 employees laid off from 380 tech companies this year. Though I wonder what counts as a "tech job". For example, is the sales team included?
Readit News
Revenue: $12.83 billion vs. $12.94 billion expected, $110M under expectation, and revenue declined 1% year over year in the fiscal second quarter.
Why is this a punchline?
Because their core business, the Client Computing Group that makes PC chips contributed $7.41 billion in revenue, up 9% and right around the $7.42 billion consensus, so that part is doing fine.
But the Intel’s Data Center and Artificial Intelligence unit posted $3.05 billion in revenue. The result was down 3% and lower than the $3.14 billion StreetAccount consensus, which accounts for pretty much all of the decline in expectation.
The shortfall almost entirely is in the Data Center and AI Unit.
Bellweather?
Deleted Comment
15% layoffs is nearly 20,000 people.
More discussion on official release: https://news.ycombinator.com/item?id=41133084
> The chipmaker plans to cut 15% of headcount, which was over 125,000 at the end of the second quarter.
https://jobs.intel.com/en/locations ("Creating technology that will improve lives and transform the world is a global effort. Our 131,000 employees work in 65 countries, contributing their diverse perspectives and experiences to our innovative team. Explore our locations and find your perfect fit.")
Deleted Comment