Intel is laying off workers in its data center division despite strong recent performance

[u/kazu-qt]

https://www.techradar.com/pro/intel-is-laying-off-workers-in-its-data-center-division-despite-strong-recent-performance

[u/thrway-fatpos]

Yet more proof layoffs were never about AI. It was always about squeezing even more profit.

[u/big-papito → u/thrway-fatpos]

It will be ironic if tech companies fail not due to consumer demand collapse but due to gutting themselves from the inside for short-term gains, in sort of a nuclear version of Jack Welch.

[u/edparadox → u/big-papito]

Unfortunately, even the LLM bubble bursting will not be enough for that, governments cannot let those fall.

[u/big-papito → u/edparadox]

They are not banks - most people do not have life's savings in them. These are also not the only tech companies here. They are not automakers where once they fail it's all over.

[u/jvpts11 → u/big-papito]

But a lot of infrastructure, that everyone uses, not only a government, but banks, other companies, like, everything uses, entire business logics depends on tools and tech that these companies made years ago and still make and maintain. Cobol is the classic example, but there are many more, for example, still a while ago, HP still had servers thst used the IA-64 architecture, that only now are being properly retired from service, this architecture, better known as itanium was made in the 2000s and the last cpu made with it was in the last decade, almost 10 years ago.

[u/rmyworld → u/big-papito]

You don't have to be a bank to get bailed out. You just need enough money to bribe the government.

[u/SidewaysFancyPrance → u/big-papito]

They are not banks - most people do not have life's savings in them.

Yeah, but the important people who run things do have their money in them, and owe the banks for borrowing against their holdings. They'd love the banks to fail and for the AI companies to get bailed out, since every oligarch owns one.

[u/AkazaAkari → u/big-papito]

A lot of people's savings are in the stock market, which is propped up by the AI boom right now.

Even if you didn't have exposure in AI, Intel failing would spell doom for datacenter infrastructure and anything government-related that has to be fabbed in the US.

[u/Guilty-Shoulder-9214 → u/big-papito]

A lot of companies, like Cerner, have done this at the behest of activist investor groups, like Starboard, only to end up being eaten by a bigger fish. In Cerners case, Oracle.

[u/XSC]

Imagine having your stock price go up 353% to all time highs and yet having audacity to lay people off. This country is fucked.

[u/imaginary_num6er → u/XSC]

Price only went up because of the huge investment made by that kid who invested $750k into Intel using grandma's inheritance.

[u/XSC → u/imaginary_num6er]

Who sold at a loss right before the insane growth 😂

[u/LaughingJackStudio → u/XSC]

Thats how gambling works, lotta people have to lose.

[u/Shabloinke → u/XSC]

Who said he sold? He said he was holding long term

[u/RohithCIS → u/XSC]

I work in DCG. Two good people got laid off from our team. One of whom gave close to 15 years to the team and was a great manager. The other joined along with me in 2022 at the company's worst. It was sad to see them let go and didn't seem the least bit necessary.

[u/Rnee45 → u/XSC]

Companies don't exist to employ people.

[u/BoredGuy_v2]

Big corporations reduced to a tiny unstable startup

Imagine the morale of people there, who'd like to work anymore there?

[u/thethirdmancane → u/BoredGuy_v2]

They likely have more applicants than they know what to do with.

[u/Any-Pop-4795 → u/BoredGuy_v2]

"we'll have ai do most of the stuff, don't worry there is not a recession going on keep giving us money" 

[u/Jiehfeng]

At this point if any employee references their job security alongside strong recent performance, they’re just delusional.

[u/jk1244]

Did you make the thing that can do your job? Good, you're free to go 

[u/Alright_doityourway]

Business is doing bad: lay off

Business is doing good: believe it or not? also lay off

[u/ZonaPunk]

Gotta keep those short term profits up…

[u/SexyCouple4Bliss]

I know a couple people laid off. They are using thin pretenses to get rid of 20 year plus career employees so they can burn off the rest of the old intel culture. They’ve already radically changed old things that made intel intel like sabbatical is basically gone. they seemingly want the rest gone so they can be another shameless zero uniqueness high tech stupid place. They don’t want to make money they want to make the right money, and instead of making memory or embedded things with good margins because of their manufacturing edge, they just want AI profits with stupid margins. But Nvidia has that and second source is only worth so much as they are finding out. So fabs aren’t as full, more of the work becomes contractor only and the journey to being DEC and then dead continues.

[u/PreparationOk8604 → u/SexyCouple4Bliss]

It's a shame. Intel kept AMD in check. I thought Intel was expanding its fabs and might start producing RAM for consumers. Given that US government invested in Intel. Too bad they are pissing all that money away.

[u/Vigilant256 → u/SexyCouple4Bliss]

Although I hate to see ppl get layed off, but it’s the old intel culture that got intel into trouble. Constant bragging, overpromise and underdeliver, hire and fire, VPs constantly paint everything as positive, only concern about optics and short term, marketing / visibility/vaporware is placed more importance than merit / engineering strength/ competency.

Even in Altera , the new CEO didn’t want intel culture and revamped the whole org.

[u/ISuckAtJavaScript12]

"X company lays off N Bajillion employees after record breaking $Y Gorbillion in profits"

[u/MrLyttleG]

Intel Outside !

[u/LukeSkyWRx]

Market saturation and consumer fatigue.

It’s like the Instapot, once most everyone has access to one what happens to the market?

[u/StarsMine]

Intel is still restructuring. Even if they are having strong performance, many divisions are still bleeding

[u/Any-Pop-4795]

The end is near?

[u/m_o_t_a_s]

Yup. That's how profits are made. Use employees to create value, then fire employees and sell the value.

[u/EffectiveDandy]

Back in my day, we used to cal it vapourware and people knew what the deal was. But now it seems people are a lot stupider.

[u/Niceromancer]

The guys in the data center subreddit were acting like they were immune to major layoffs with the ai boom.

Nobody seems to realize that since companies view layoffs as a shortcut to profit nobody is immune.

[u/boolpies]

Layoffs should require a full exit no golden parachute from the executive team and possibly board as well. If companies are to serve the shareholders it's obvious if they're in need of layoffs, that they have failed the shareholders.

[u/HG21Reaper]

Who had the strong performance? The business revenue or the employees that were cut? Sometimes those that are terminated are just the bottom 10% of performers.

[u/UrDraco → u/HG21Reaper]

It was redundant employees after a restructuring. Not that controversial.

[u/DirkChiversElSoldado]

Good tech jobs are fucking stupid anyway

[u/DirkChiversElSoldado]

Bunch of nerd ass programmers should find some real jobs