Alright, where do I even start with this whole Intel saga? It’s like watching one of those soap operas—drama, unexpected twists, and a bunch of cliffhangers. So, recently, Intel’s been in a bit of a pickle. Downsizing, layoffs—you name it. Just last month, they announced massive layoffs in the US. Why? Apparently to focus on AI. Not sure how that connects, but here we are.
And then there’s this thing about their Q2 earnings call. Intel’s trimming their crew down to 75,000 “core employees.” The math wizards at The Verge say that’s around 24,000 folks getting the axe. Ouch, right?
Plus, they’re putting a hold on plans to build some gigantic factories in Germany and Poland. Those could’ve been job goldmines. But nope, not happening now. Sad trombone.
There’s more! They also plan to shuffle things around in Costa Rica, moving operations to Vietnam. But hey, some folks in Costa Rica get to keep their jobs. Silver linings, I guess?
Their CFO, David Zinsner, chimed in about Ohio, too. Said they’re slowing construction so they don’t overspend. Practical? Or just damage control? Who knows.
In doing all this, they hope to save $17 billion. That’s a lotta dough, but word on the street is they’re still losing money. So, will we see more layoffs? Probably. Stay tuned.
Now, let’s talk history. Intel used to be the big cheese in chip tech back in the 80s and early 2000s. But, they got comfy, didn’t see the mobile and AI wave coming, and bam—next thing you know, Apple, NVIDIA, and others are way ahead.
In 2023, they reported a $7 billion loss. That’s a lot. The previous year wasn’t any better. It’s honestly a struggle to watch. They launched their Intel Core Ultra Series 1 AI chips in 2024, but they were a letdown. So they rushed out the Series 2.
But, here’s the kicker: their old CEO, Pat Gelsinger, stepped in it big time. Made some iffy comments about Taiwan and now TSMC cut Intel off from a sweet deal. That’s like shooting yourself in the foot and then wondering why you’re limping.
Noticed more PCs are starting to use AMD chips instead of Intel’s? That’s a change. Feels like a bad breakup where all your friends start choosing sides.
As for the next move? They’re banking on new processors like Panther Lake and Nova Lake to pull them out of this mess. Fingers crossed, right?
Anyway, keep an eye on this story. Intel’s going to be in the news a lot more, I reckon.
