from Hacker News

Intel to cut 15% of headcount, reports quarterly guidance miss

by Gerlo on 8/1/24, 8:16 PM with 19 comments

• by rexreed on 8/1/24, 8:28 PM

  Some of the financial punchline:

  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?

• by StringyBob on 8/1/24, 8:33 PM

  Intel had over 130,000 employees as of a couple of months ago.

  15% layoffs is nearly 20,000 people.

• by ChrisArchitect on 8/1/24, 8:37 PM

  [dupe]

  More discussion on official release: https://news.ycombinator.com/item?id=41133084

• by bbarnett on 8/1/24, 8:28 PM

  This is how you recover the lead, lay off people! Chasing that short term stock price goal really seems counter intuitive here.

• by 93po on 8/1/24, 9:29 PM

  oh goodie, what a wonderful job market, especially after already being unemployed for over a year

• by chemmail on 8/2/24, 10:38 PM

  I don't usually give friends stock advice, but i text them to dump any intel if they have. Let see who listened.

• by postepowanieadm on 8/1/24, 8:23 PM

  Globally, or just in the US?

• by paulddraper on 8/1/24, 8:31 PM

  IBM missed earnings by 1% so it cut 15% of workforce?

  Are those the correct numbers?