Become a MacRumors Supporter for $25/year with no ads, private forums, and more!
  • Did you order new AirTags? We've opened a dedicated AirTags forum.

MacRumors

macrumors bot
Original poster
Apr 12, 2001
52,395
14,094



intel-logo-250x165.jpg
Intel has announced a major corporate restructuring that will see 11 percent of its workforce laid off as the company intensifies its focus on its data center and smart connected computing businesses.

The move is being billed as a profitable and efficient evolution of the company away from its traditional PC sector base toward more high-growth areas, broadly defined as its cloud-powering hardware and Internet of Things businesses. These areas reportedly made Intel $2.2 billion in revenue growth last year, making up 40 percent of its operating profit and offsetting its decline in the PC market.

Combined with its gaming, home gateway, memory and connectivity businesses, the initiative will fuel a "virtuous cycle of growth", said Intel, but the move comes at the cost of up to 12,000 jobs globally. The company said the layoffs will be completed by mid-2017 through a combination of voluntary and involuntary departures as it re-evaluates its programs and consolidates its sites worldwide.

Intel forecasts that the initiative will deliver $750 million in savings in 2016 and annual run rate savings of $1.4 billion by the middle of the following year.

While Intel's press release makes no mention of its latest microprocessor uptake in the PC market, the company did recently confirm the end of its highly successful decade-long "tick-tock" strategy of annually delivering new processors, after chip updates stretched beyond the yearly cycle in recent generations and began affecting Apple's product launch cycles. The launch of Intel's Kaby Lake 14-nm microarchitecture was delayed to the second half of 2016 after Skylake suffered similar setbacks in 2015.

Semiconductor foundries have had increasingly tough times creating smaller process nodes as fabrication of smaller transistors has become increasingly expensive and complex. Intel has said it will now move to a new "Process-Architecture-Optimization" model for its current 14-nm node and next-generation 10-nm node family of chips.

Article Link: Intel to Cut 12,000 Jobs Amid Declining PC Market
 

Shirasaki

macrumors G4
May 16, 2015
10,501
4,260
It is the time Earth can no longer sustain over 7 billion people?

BTW, because of the scale, could I suspect Intel is just trying to keep a good profit margin of their own products?
 
  • Like
Reactions: dysamoria
Comment

djcerla

macrumors 68000
Apr 23, 2015
1,985
9,183
Italy
No wonder.

At this pace, Apple will catch up and surpass Intel's offering, then all hell will break loose.
 
Comment

DTphonehome

macrumors 68000
Apr 4, 2003
1,799
2,558
NYC
Apple really needs to take control of their silicon. ARM is getting good enough to compete with Intel on the low to medium powered computing needs. Eventually it can handle everything. Why bother with Intel, AMD, nVidia, etc and all their respective roadmaps (that are constantly delayed)? Imagine what a fully optimized OS X could do on well-designed ARM. Cut out the middleman and design your own chips, Apple!
 
Comment

Rogifan

macrumors Core
Nov 14, 2011
22,416
28,205
Apple really needs to take control of their silicon. ARM is getting good enough to compete with Intel on the low to medium powered computing needs. Eventually it can handle everything. Why bother with Intel, AMD, nVidia, etc and all their respective roadmaps (that are constantly delayed)? Imagine what a fully optimized OS X could do on well-designed ARM. Cut out the middleman and design your own chips, Apple!
What programs would run on an ARM Mac?
 
  • Like
Reactions: dysamoria
Comment

Three141

macrumors 6502
Jan 1, 2016
391
333
London
Yikes. Hopefully these people get a humane severance package.

I was thinking the same.

If we do go down the road of tablets for everything then then I can only see this getting worse for Intel as people upgrades there tablets at a slower rate.
 
Comment

Oppenheim

macrumors 6502
Oct 11, 2015
273
150
Intel Leixlip, Ireland at risk?

Bringing high tech manufacturing home seems to becoming popular in US corporations/US politics.

Which is a good thing.
 
Comment

dmylrea

macrumors 68040
Sep 27, 2005
3,375
4,310
This will assist AMD on catching Intel on processor technology. Will Apple move it's focus to ARM Macs now?

How's that? AMD has had 10+ years to make good on their processor technology, yet is always the low-end value choice when buying a computer. If you can't do it right in 10 years, you never will.
 
Comment

NT1440

Contributor
May 18, 2008
12,721
16,395
I was thinking the same.

If we do go down the road of tablets for everything then then I can only see this getting worse for Intel as people upgrades there tablets at a slower rate.
I think that's why they're trying so hard to become Apple's supplier of modem chips for the iPhone, guaranteeing a certain revenue stream as they continue to restructure.
 
  • Like
Reactions: Three141
Comment

BenTrovato

macrumors 68030
Jun 29, 2012
2,968
2,045
Canada
As tough as it is when people lose jobs, this is a great example of why our society doesn't work.

Firstly, Intel cut these jobs because the tick tock schedule no longer increases profit. They're still profitable just not as much. With the increase of computing power, Intel could produce chips that blow away what we're currently using. However this doesn't align with manufacturers product offerings, giving consumers enough time to recycle their products. Software, and consumer purchases operate at a slower pace now relative to hardware advances.

Secondly, due to the first, our world stinks. We continue to operate in a way to maximize profits and shareholder earnings versus advancing and changing how we do things. People lose jobs, aren't happy, and our home is being turned into a litter box.
 
  • Like
Reactions: KoolAid-Drink
Comment

Bubba Satori

Suspended
Feb 15, 2008
4,726
3,753
B'ham
It is the time Earth can no longer sustain over 7 billion people?

Huh? I'm missing the connection to the story.
[doublepost=1461160487][/doublepost]
As tough as it is when people lose jobs, this is a great example of why our society doesn't work.

Firstly, Intel cut these jobs because the tick tock schedule no longer increases profit. They're still profitable just not as much. With the increase of computing power, Intel could produce chips that blow away what we're currently using. However this doesn't align with manufacturers product offerings, giving consumers enough time to recycle their products. Software, and consumer purchases operate at a slower pace now relative to hardware advances.

Secondly, due to the first, our world stinks. We continue to operate in a way to maximize profits and shareholder earnings versus advancing and changing how we do things. People lose jobs, aren't happy, and our home is being turned into a litter box.

Why do millions keep flocking to it if it's so terrible?
 
Comment

Shirasaki

macrumors G4
May 16, 2015
10,501
4,260
Huh? I'm missing the connection to the story.
[doublepost=1461160487][/doublepost]

Why do millions keep flocking to it if it's so terrible?
You can refer to this post. This one could connect what I say to this story.
As tough as it is when people lose jobs, this is a great example of why our society doesn't work.

Firstly, Intel cut these jobs because the tick tock schedule no longer increases profit. They're still profitable just not as much. With the increase of computing power, Intel could produce chips that blow away what we're currently using. However this doesn't align with manufacturers product offerings, giving consumers enough time to recycle their products. Software, and consumer purchases operate at a slower pace now relative to hardware advances.

Secondly, due to the first, our world stinks. We continue to operate in a way to maximize profits and shareholder earnings versus advancing and changing how we do things. People lose jobs, aren't happy, and our home is being turned into a litter box.
 
Comment

yaxomoxay

macrumors demi-god
Mar 3, 2010
5,595
30,570
Texas
As tough as it is when people lose jobs, this is a great example of why our society doesn't work.

Why? Production fluctuation happened since the dawn of civilization. A little bit more than a century ago it meant to starve to death. Today it means being laid off.

Secondly, due to the first, our world stinks. We continue to operate in a way to maximize profits and shareholder earnings versus advancing and changing how we do things. People lose jobs, aren't happy, and our home is being turned into a litter box.

Employees work to maximize their profit and benefits also, unless they're complete idiots. Maximizing profits is what makes the whole thing move forward.
 
Comment
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.