Intel suspends dividend, cuts $10B in costs: CEO reacts
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- Опубліковано 8 вер 2024
- Intel (INTC) plans to lay off roughly 15,000 employees this year and will stop paying its dividend, as the chipmaker tries to cut costs. The company said third quarter revenue will be $12.5 billion to $13.5 billion, which was below analyst expectations. Intel has already been struggling to keep up with competition in the AI chip space, including Nvidia (NVDA) and Taiwan Semiconductor (TSM). In an interview with Yahoo Finance Executive Editor Brian Sozzi, Intel CEO Pat Gelsinger addressed the cost cuts and layoffs saying, "The capex reductions are about making a more efficient Intel." And when it comes to the disappointing third quarter guidance Gelsinger said, "We see the market recovering more slowly than we indicated at the start of the year." For the second quarter, Intel missed expectations for both earnings and revenue. The company reported earnings per share (EPS) of $0.02 on revenue of $12.8 billion. Analysts were looking for EPS of $0.10 and revenue of $12.9 billion.
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The salaries of Intel’s CEO and top management should be reduced. Firing employees due to the CEO's incompetence is unfair. Maximizing shareholder profits often leads to lower quality, reduced innovation, and decreased safety. There are no safeguards against this lack of accountability.
They have to fire employees, they aren't making any money. If they go bankrupt, everyone loses their job. I'm not sure if you're still a kid or something, but companies have to earn profits or they won't remain a company. Meta recently laid off a large share of its workforce, maximized profits, and the company is innovating more than ever. Yes, CEO pay for Pat should be reviewed at the end of the 5N4Y saga.
As someone who worked there, I can tell you that they overspend on safety. Also, they got the majority of their compensation in stock options. They’re taking the biggest hits by far.
@@joshg8250 are you a kid? Intel made 13 billion in Q2. Profit. Reducing 15% of the staff meanwhile, the CEO made almost 200 million in 2021 and still makes tens of millions does not equal “poor tech billionaires, they need to fire people so they can keep earning more billions.”
Think I’m wrong? Why do tech companies like Google fire employees that attempt to unionize?
@@richardm450 and who told you those employees are competent? Maybe those 15% employees are the incompetent ones who drag things down.
Good talkers are moving up the ladders faster than good doers.
that's how corp works, if they cant fix it they know how to pillage it. In the end, the ones with parents rich enough and connected enough to get you to the stanford school of financil thugs walk away with all the money. Sam Bankmans Parents are from the thug school
Tale as old as time in tech. So many useless people rewarded on the backs of skilled devs
Idiocracy unfolding in real time.
@@sethdouglas2765 You’re one of them?
in Japanese culture, the military leaders commit seppuku when defeated or shamed. It's strange how US executives layoff thousands and feel no shame.
Intel CEO should step down.
I think he should be deported
You go woke...you go broke. I have few friends working there. They say how company just went 200% woke after 2018ish in name of culture change and work life balance. Employee happiness and diversity became top goals instead of project deadlines. Time to bring Sohail back to bring company back in shape. He was driven and goal oriented. Current leaders are just gutless softies and clueless.
The problems intel is having not is not Pat’s fault, he is doing all he can. Intel was like Nvidia in market share of the 90’s and they had a ceo that went with the strategy of maximizing profit for shareholders, with just about no plan for future and R&D. Meanwhile Jensen has been cooking what you see now for 30 years, an unprecedented achievement.
@@MatthewMS. You go woke...you go broke. I have few friends working there. They say how company just went 200% woke after 2018ish in name of culture change and work life balance. Employee happiness and diversity became top goals instead of project deadlines. They say that it is time to bring their legendary Fab leader Sohail Ahmed back to bring company back in shape. He was driven and goal oriented. Current leaders are just gutless softies and clueless.
it's not his fault...it's previous CEO , too late to change and being comfy
How are you going to compete against TSM and NVDA when you can’t even compete against AMD!
With what they're doing, they don't need to dominate in either. Just take a fractional share of each.
The government will save them. Contracts will be coming I bet.
@@meanboycoins6250 socialism for the rich but not for us
Outsource the CEO's job.
@@Russo2024Zir lol on what planet
He should be held accountable, instead of admitting that he is blaming everything else but himself.
he needs to cut the exec team and their salary and bonuses!
He is not responsible for people buying or selling his shares. His responsibility is to run business and inform people about decisions in logical way that is what he is doing.
@@bsKennys they only care about their own salary. Intel doesn't have good dudes. That's why they suck.
the strategy that he is implementing putting everything into foundries is a failure
@electronik808 If he doesn't put effort in foundry, what else will he have? Core I-5/7/9 CPUs are oNly used in workplaces, and some of them are crashing and lagging behind AMD.
Zero accountability for layofffs nice
L2Business
The people getting laid off were not needed and likely the lowest performers. There's a huge glut of noobs in tech right now.
Ummm, weren’t you clowns crying about corporate profits for years? Welp, here ya go.
@@bubbasanches4591I’d wager those were gone last year. This round was probably the overpaid ones.
dont try to fake you are another Jensen, cause you are not. nobody wants your gaudi 2, or 3
Great video! People focus on price patterns, but volume is often ignored. I've been learning more about it and think combining volume with price action really improves technical analysis!
Can you share what you focus on in volume analysis?
Look at aspects like historical volume, price fluctuations, and critical support and resistance levels. Monitoring volume as a stock approaches these levels is essential. Knowing broader market trends is also important-i got some help from my advisor on this, which has greatly enhanced my technique
Totally agree! it made a big difference for me too.
How do you find a good advisor? I could use more insight
There are many out there. “Lois Jean Frueh”; for example is very experienced and consistent. I go with her
Replace him
Unlike Intel, AMD is fabless, and yet it took more than four years for Lisa Su's turnaround strategy to pay off financially. How could anyone seriously believe that Intel could turn things around in less than four years?
Unlike Intel, AMD didn't have their CPUs degrade in people's computers -- even when their CPU architecture was poor in comparison to their competition. They also didn't try to gaslight their users who had these issues for over a year by refusing RMAs and try to downplay their failures before later admitting that they knew about these defects the entire time. And this is in Intel's own products using their own in-house design and foundry -- that's not exactly going to inspire confidence in Intel's potential foundry customers, is it? Surely Pat with his great engineering experience at Intel would've seen that selling faulty chips to people was going to backfire spectacularly when people would eventually find out??? For this reason alone, he should be fired without question.
@@ma-af3753 When these chips were designed and the factories that made them were built, Gelsinger wasn't even CEO. This says little about the prospects of his restructuring strategy, but rather shows what legacy he has inherited.
@@robertmuller1523 wrong. Pat became CEO in February 2021 -- 13th gen CPUs were released in September 2022. Choosing to release them anyway with defects was 100% on his watch.
@@robertmuller1523 TRUTH !
@@ma-af3753 It takes years to build a Fab and even more time to get it working right..just sayin.
He is the wrong guy for this position,…
Since 2021 he’s the CEO and the performance is worse than 10years ago…
He is absolutely the right CEO for us right now
@@observerone6727 explain it then
Pat is still the man for the job. You can’t turn a huge ship like intel around quickly.
He is attempting to turn a huge company around. This has been stated as a 5 year rebuild/restructure. Calling for his firing half way through is idiotic. He is meeting the milestones set in the restructuring plan. In 2-3 years we will be happy if intel keeps him in charge.
WHERE TF IS THE CHIPS ACT BILLLIONS YOU RECEIVED IN MARCH!!?? 😡😡😡🤯
It was invested in China's tech companies 😂
Lots of Fab construction going on.
@@michaelc1063 I guess in your fantasy world you can build a fab in 12 minutes or something.
Pat keeps talking about how great Intel's fabs are, yet his own company chose TSMC's fabs for producing the most important parts of Meteor Lake over his own fabs -- that tells you everything you need to know about the confidence in his company's staff. It doesn't matter what great EUV machines or fabs they have if the talent needed to make the most of them is abandoning ship. Intel already tried to buy the talented engineers from AMD, Apple and Nvidia to produce "world class products" (Jim Keller being one of them) but most of the talent are choosing to voluntarily go elsewhere due to the reported internal mismanagement and company culture -- these layoffs will encourage the ones still working at Intel to do the same. Between this and Intel's oxidation, degradation and ring bus issues that his current 13th and 14th gen CPUs have and are still yet to go mainstream, their foundry business is more than likely to be spun off and I expect we'll see another massive round of layoffs by Q1 next year and their stock price will be lucky not to tumble down to $15 or less.
pat: we're competitive with nvidia
Fire this guy
You are clueless about Pat
@@observerone6727 Absolutely NOT
@@shekharshashi2000If you're not an Intel employee, then you are clueless. If you are an Intel employee, YOU should be fired. I'm taking Intel retirement. Perhaps you will be an ISP.
@@observerone6727 - I am shareholder. I will vote him out
Nokia, Kodak, Blackberry, AOL, Motorola, Xerox, Yahoo!, IBM, Polaroid, Palm, Netscape, Nortel, Novel...(just to name a few) all were once GIANTS in their respective fields with commanding market share (50% or higher). Today, most of them exist in NAME only or a mere shadow of their former selves. Intel would DO WELL to learn the lessons from them...
@@lil----lil LOL, listing IBM in that list is hilariously misguided. It's revenue is over 50 billion with a big B and you listed it with deceased companies. LOL. Misguided...
former employee at intel and i can say this guy stinks
@@kryptokingg can tell us more ?
Spill the beans
Hi, at what post you were and how you knew him?
Not just him. I met several Intel high-level managers and they all stink: talk big as if they already surpassed TSMC in the fab process while in real battleground they are plain losers. PPT culture rotten to the core.
If you're so knowledgeable/certain about this, you should have been able to convince the board to make you CEO.
A lot of people at intel going to be getting the pink slip......
Wow what a joke
The Intel Plan makes sense. Time to keep on investing on Intel while stock is relatively cheap.
Pat takes home 170 million $ a year. Just to campaign for 8 billion $ in taxpayer money from Chips act and then axe engineers with respect and dignity!
His total comp in 2021 was $179m, 80% of that was in stock. If you've seen intel's stock recently you'll know he's getting nowhere near that amount if he sold them today.
His total comp in 2023 was $16m, one of the lowest of all CEOs in the semiconductor industry.
@@elrondes1 Thanks for being sympathetic to Pat. You are probably forgetting about the PhD engineers whose blood this mofo sucks and whose careers this mofo ruins with his bad decisions.
@@kundu123451 You're blaming the wrong guy. The CEOs before him squeezed short term profits, while stagnating company innovation for years.
Giving this CEO tax payers' funds is a waste. Intel has for many years failed to change with the times to compete with the competition.
Inventory digestion taking too long? Yeah, your competitors are taking market share because your chips are burning out and you can't be trusted. You can digest that inventory into a landfill.
Such a failure CEO, talk so much but got nothing right.
You don't know what you're talking about. He inherited a dying company and is the CEO they need.
@@pf100andahalf He made Intel even worse of a company. Their products can't compete with AMD or nvidia
@@AgentSmith911 Intel started hiring accountants as CEO's and they stopped innovating and ran the company into the ground. You make a lot more money in the short term if you stop putting money in R&D. What you're seeing now with melting cpu's is because of a long festering rot in the company and Gelsinger is the only one who can bring them back. He's a tech guy and that's exactly who they need, not a bean counter, and is the right guy for the job. It'll take a few more years to fix Intel's problems. Let him do his job.
@@pf100andahalf When are their high na and hyper na products out then? That might give them a 10 to 15% advantage over nvidias and AMDs TSMC based products, but only for a while.
@@AgentSmith911 I wish I knew.
A suggestion for him
He can keep talking about the geopolitical risk of TSMC... that might help for Intel's stock price.
The comments in here are hilariously negative. Pat is 4 years into a 5-7 year turnaround play. For extremely advanced chips it takes 5 years to develop. Fabs take 3-5 years to develop. After many years of mismanagement, Pat has done what many thought were impossible already with 5 nodes in 4 years. Lunar lake is the best thing that’s come out of Intel in a decade. Things are improving dramatically, the finances just don’t show it yet.
@@killercage2 this is the only reasonable comment I’ve seen in here. You can’t turn around a mess like Intel had made in a couple of years. This stuff takes time.
First reasonable comment. Intel is going to be 5x in a couple of years for sure. Their foundry business is revenue is 4 billion dollar a quater more than their competitor total revenue
@@f.a.4077 In your dream. Your margin is not there. Why did those Chinese chips companies fail when taking big funds from their government while still failing? Pat is just re-proving a theory already proved by the Chinese. Besides, the political climate is uncertain and the Chinese market might not be there in a few years for Intel products . Where is your market to digest your chip supply in a few years while your market is shrinking? Completely wasting money and time.
@jamesjz918 China will be first market for intel as china's dependencies on taiwan will be completely over due to tsmc. Yes, margins are not there yet and that is how semiconductor business works.
You are 100% correct ! Intel is like a big battleship it takes a lot to make it turn ! Good things are coming soon from Intel.
Brutal comment section.....
AMD is eating their breakfast, lunch and dinner.
Ha. AMD wishes they had the revenue of Intel. Why not read up. 2x revenue in Q2
@@RotaxXSrevenue isn't profit, bud - why not read up on the difference between the two? AMD's data center revenue doubled whilst Intel's is falling off a cliff -- and this is the sector with the biggest profit margins for any tech company. Intel wishes it had AMDs current quarter results and net profit of $265 million vs Intel's actual loss of $1.6 billion.
@@RotaxXS 2x Revenue but 5x the employees. The company is digging its own grave LOL
10nm nodes in 2025, it's like fighting with stones when the competition fights with rockets, this is your vision?! Sorry to say, but his guy should have been fired long time ago. You can sell marketing crap for one year, maybe two, but not for 5 years.... A competitive Intel should be one without Patrick P. Gelsinger as a CEO!
CEO and other higher management will get million dollar salaries.
@10:57 "This is my company, these are my people", and "I'm going to wreck the company with the help of my executive minions, and screw up 19,000 scape goats I call my people".
What a wolf in sheep clothes. Pat Gelsinger sends vibes that he is there for the big turnaround. Wake up people. Had he taken a $1 salary until he delivers the promise, I would believe him, but not when he takes over $100 million (cash and bonus) while sacrificing 19k lambs. Sorry.
Lunar Lake is a great SUCCSESS 🎉❤thank you Intel for being the leading edge on Technology
"no meaningful change in our market share". That is a lie, just about everyone is taking your shares.
Exactly. This is a huge warning sign to me as the CEO is still decoupled from reality and making decisions based on this wrong evaluation.
If you smart you buy the stock now for 2030
They will recover, this is a great time to buy Intel Stock...it will go up in a few months, maybe even before 2025.
Don't put too much trust on this guy. Intel stock is more likely to see 10 than 30 at the current level (20).
I've read almost all the comments.. I have been using a Lenovo laptop as a desktop with a core i5 processor since 2011, solid no major issues with the processor. I had lived through the tech boom and crash in 2000's and witnessed the rise of the silicon valley.I am 45 years old now and living in overseas.Intel is too big to fail, do not compare it with GM, GE nor Yahoo. Intel is the Mekka of the chips industry and cradle of the tech industry.I assume most commenters are young investors. As far as I am concerned , Intel has become a Buffet style stock. Lower the price, the chances of Elon and his gang acquiring a big chunk of this giant is getting higher.
Well said !
What did Intel do with the free money that they got??? A joke of a company!!😂
Chinese companies take subsidies and become successful. US companies take the money, declare bankruptcy and run away, pockets full.
He built the stupid money losing foundry as congress wanted.
He spent it on China's tech companies, since his own company wasn't worth investing into.
fire him just on the i9 13900K \ 14900K Fiasco. Honor you commitment to "Make it Right" for your customers. Offer the choice of a replacement CPU \ Refund for the people that are having issues with your faulty chips. Be honest and upfront (Something you haven't and continue to be evasive). Intel is a joke.
Fire the CEO and rip off his compensations and make him pay for the failures. AMD turned around looking at NVDA. What was he doing all these years? Revamp the board.
Intel still dominate the market and have a much higher price than AMD, what went wrong?.
Great Trades none the less,it could've been either way.
Yahoo anchor should’ve asked about the doubling of stock base compensation?
Did he hear about the ones he stole from saying that crossed the red line and they have decided to use the real law of this land to come for this man and his frens that took our tax and bought kids allegedly.
Talk: 100
Execution: 0
Its stunning what we have been to accomplish.. which is NOTHING
intel is done. 13 and 14th gen CPU is frying like eggs. they will lose 20 billion on their foundary. biggest crisis in intel history
He took money from government yet no productivity. He is incompetent. Fire him.
What Intel needs to succeed:
more diversity
more inclusivity
more investments in HR
more gender equality
less engineers, because who needs them
Simples.
Jokes aside, Intel is a Boeing of semiconductor sector. The door just blew off.
I can remember that in the early 2000's intel was ahead of AMD. Intel had the Pentium chips that were expensive - they had the commercials. AMD did it the right way provided a quality product that is affordable. Intel even had Microsoft to bolster their product with all of that - it's still failing. now they want to lay people off - it's not the people it's the leadership. my suggestion they should look at what makes the competition more successful & implement those changes
Fire Pat 🗣️
Layoffs may be an inevitability, but to do it over and over and over? Plus Gelsingers wording on the conference/earnings call of having "more wood to cut" shows just how little Intel corporation values Intel engineers.
Intel has implemented job cuts multiple times over the years, particularly in response to market fluctuations and internal restructuring. Significant layoffs include:
1. 2006: Intel announced the elimination of
10,500 jobs to save $3 billion a year.
2. 2015: Approximately 1,100 employees
were laid off.
3. 2016: Intel cut 12,000 jols, around 11% of its workforce at the time.
4. 2020: Hundreds of jobs were cut as part
of restructuring its data center group.
5. 2022-2023: The company implemented multiple rounds of layoffs, affecting thousands of employees globally, including significant cuts at its Folsom, California R&D campus.
And now another 17,000?
How about approaching business with a slow sustainable growth?
This G has been full of air since he took over Intel years ago. Investors pettily has been cheated on all this time, until the ballon bursted just now.
Guess selling those faulty 13900/14900 CPUs catching up to them. Get your act together Intel we need you.
Needs to step down
Someone needs to tell him that repeating the word "AI" over and over again isn't working.
suspended dividend but made sure not to suspend this ceos pay. lol
He is not a good CEO. He guessed incorrectly and led poorly. He needs to go.
Bro is delusional
AMD, Nvidia are smoking you
My PC runs on AMD CPU... You hack.
If you go from consumers perspective. Amd CPU's are using less power with more performance. Plus Intel is way behind on nano technology, like years. Intel is in deep trouble.
Keep Pat.
The intel latest CPU called: THE FBI core hot631==305A drone405==305A==926B 7😅😢
Sell this turd, its just like 2000, when they abandoned their building and fled Austin TX, this company is just on the wrong track, and has been for a long time. The dividend cut means they are no longer even profitable, and it will be a LONG time, even if they somehow recover.
This joker needs to go. Take back what was paid to him.
He’s focusing on the wrong thing, instead of financials he should be focusing on a quality product not financials
NEVER get rid of a dividend. that's a bad idea..
On the contrary, that should have been his first move as CEO. Layoffs are way too late and reactive as well.
They have no choice
@@twizzler000 well, on the other side if they want to buy back their own stock , this was a good way to get it cheap. Most 401k will dump it without a dividend. WBA dropped their dividend recently and the stock showed it.
This guy has had enough time for a turnaround but he's obviously just another clown wearing a suit
It's OK, a little penny stock never hurt anybody
Spin off the foundry.
Don't take your pay Pat, you coward
AMD is destroying Intel
@@High1QWealth Amd annual revenue 22b vs Intel 55b.
Not even half
@@caracal9458 AMD revenue is half with a fifth of employees. AMD is also profitable and cash flow positive.
Alot of bla bla bla fluff coming out of this guy's mouth.
Intel is the new ibm
Pat the Rat 🐀
how do you feel about those 16K employee layoffs mr CEO? Absolutely no empathy coming from this guy. Say "NO" to mass layoffs, this should be illegal.
short Intel and long AMD
Can’t fix a company that continues to makes products that no one wants…. Clearly they cannot design/fabricate as well as their competitors
Yet $12 billion on Q2 revenue. Yeah - no one wants. 😊
@@RotaxXS12 billion but has more employees than AMD, Nvidia and Qualcom combined. Dumbshit revenue is not profit.
Have you always had this problem with saying stupid sh-t ?
Hope someone buys this company out
Yes, at 1 dollar a share.
Need new CEO
Intel products just don't sell, at all. GPU project is mostly a failure.
He has zero credibility - how about trying to appear as a CEO not a janitor.
the only one that Intel should fire its him
After nearly 4 years, this guy is still asking for more time and money so that he can spend on the wrong investment. The board, if still functioning, should have fired him long time ago.
Intel chip facilities take easily 2-3 years to build, and another year to get the process running. This is a long hold investment, if you are expecting the price action of Nvidia or AMD you are kidding yourselves, remember these two get their chips made by TSM. Eventually Intel infrastructure capacity will be 2nd to none. I don't see Intel getting back into the groove of things till Q2-Q3 of 2025, for me is a buy...
Not what I am hearing. I am hearing these fabs are not doing well or going as planned. Im sure some of these ex 15,000 will have something to say.
There are only so many companies that have Fabs.. Always nice to be able to make your own chips.
Do a little more research yourself and don't listen to anything this Pat guy said. Intel can build more factories but their fab process is far behind TSMC and will likely never catch up in terms of yield and margin. Fab is not just about buying the best equipment available (that's what Intel has been doing). You need capable engineers to run them in a meticulous fashion, which is something missing in Intel for more than a decade.
I think the social media ADHD movement slamming Intel is kind of shortsighted. First AMD has been in a downtrend since March. Second depending on the data you look at, the failure rates of some of their chips are even higher. Both of these businesses have been affected by cyclical slowdowns
how can he be fired?
Will they give those billions back to the Feds? Stunning is a good way to describe how this company has been run since I helped build their foundries back in the late 90's and early 2000's. Always talking about great things in the future while reducing employees and taking huge compensation packages. 😂
That’s every company nowadays.
Oh brother
Someone wake up Pat
Pat is a terrible leader
Joker , ego
they can go to AMD or Nvidia
LOL
Only the paranoid survive
Multiple vacancies for tech staff in SMIC,
KINDLY apply IMMEDIATELY.
relocation benefits for family and schools support.
Operators are standing by, call now.
where?
Dream big but be realistic to move forward… u just have small piece of cake trying to feed trillions of population at the same time 🤷🏻♀️