[HN Gopher] Intel CEO Letter to Employees
       ___________________________________________________________________
        
       Intel CEO Letter to Employees
        
       Author : fancy_pantser
       Score  : 100 points
       Date   : 2025-07-24 20:52 UTC (2 hours ago)
        
 (HTM) web link (morethanmoore.substack.com)
 (TXT) w3m dump (morethanmoore.substack.com)
        
       | java-man wrote:
       | I have instituted a policy where every major chip design is
       | reviewed and approved by me
       | 
       | A surefire path to success!
        
         | viraptor wrote:
         | But also somehow
         | 
         | > We will become a faster, more agile and more vibrant company.
         | We will eliminate bureaucracy and empower engineers to innovate
         | with greater speed and focus.
         | 
         | It really is a weird PR piece rather than serious
         | communication.
        
           | samrus wrote:
           | Chatgpt thought it fit
        
         | wmf wrote:
         | Apple worked that way; maybe it still does. If a product wasn't
         | important enough for Steve Jobs to review it then they simply
         | didn't develop that product.
        
           | I-M-S wrote:
           | Apple was built around Steve Jobs - he didn't parachute in
           | the company like your average bean-counting CEO does
        
           | scarface_74 wrote:
           | I can assure you that Tim Cook doesn't review every product.
           | I seriously doubt he even knows what's going on with half of
           | them. There is absolutely no way that he used the butterfly
           | keyboards and said they were acceptable.
           | 
           | Compare that to Jobs who after he announced the iPhone and
           | started using it, saw how much the screen scratched and went
           | back to the drawing board and had then re-engineer it before
           | it shipped six months later. He even announced they were
           | doing it.
           | 
           | Better yet, the infamous "what does Mobile Me suppose to
           | do?...Then why the f%%% doesn't it do that?".
           | 
           | You noticed that Cook didn't wear the Vision Pro once during
           | the introduction? Compare that to Jobs introductions of the
           | iPhone and the iPad.
           | 
           | Rumors are, that Cook doesn't even use a Mac day to day.
           | 
           | On the other hand, Jobs didn't use a Mac after his return
           | until OS X was released. He was also definitely not a fan of
           | the Motorola phone with built in iTunes that he introduced on
           | stage.
           | 
           | Can you imagine Cook writing an open letter on Apple.com like
           | "Thoughts on Music" or "Thoughts on Flash"?
        
             | samrus wrote:
             | > Rumors are, that Cook doesn't even use a Mac day to day.
             | 
             | This has to be false. Your telling me the CEO of apple is
             | using windows 11? With ads in the start menu? Thatd be
             | hilarious
        
               | wmf wrote:
               | Obviously he uses his iPhone for everything.
        
               | readthenotes1 wrote:
               | I think the true part of the rumor is that people
               | misinterpreted a reporter reporting that the reporter did
               | not use an apple mouse.
               | 
               | https://www.macrumors.com/2024/11/17/tim-cook-didnt-say-
               | that...
        
               | scarface_74 wrote:
               | An iPad.
               | 
               | But the CEO of Google did use a BlackBerry years after
               | Android was introduced.
        
           | samrus wrote:
           | Yeah but there arent alot of people like steve jobs out
           | there. Despite what these CEOs think
        
           | cyberax wrote:
           | The current CEO is an MBA empty suit. His greatest
           | accomplishment on Wikipedia is "being the most connected
           | CEO".
        
         | _verandaguy wrote:
         | We're surely no more than 18 months away from the world's first
         | 4nm micromanagement processor!
        
         | wnevets wrote:
         | Is that something a CEO of a massive company like Intel
         | actually has the time to do in an impactful way? I'm no chip
         | designer but a major chip design sounds incredibly complex and
         | would require a tremendous amount of time & effort to review
         | meaningfully.
        
           | jiggawatts wrote:
           | I consult for large bureaucracies where this kind of thing is
           | occasionally enforced.
           | 
           | There's nothing more fun than a carefully thought out
           | cohesive design that takes into account all business and
           | technical constraints being randomly "improved" by a too-busy
           | senior manager who's been "off the tools" for decades.
           | 
           | "You should switch to NoSQL." -- a nearly verbatim quote from
           | a meeting just last week. No justification or elaboration,
           | just... abandon a relational database platform with two
           | decades of built up business value on a whim.
           | 
           |  _"Rejoice! For you have been managed!"_
        
             | mattkevan wrote:
             | I used to work for a chief exec like that. They'd see
             | something on someone's screen and demand changes,
             | destroying months of carefully planned work with a single
             | comment.
             | 
             | In the end, we'd build in 'breakpoints' - things that we
             | knew they'd pick up on and want to change so they felt like
             | they'd had some input without damaging anything important.
             | This worked very well.
        
           | fsloth wrote:
           | Strong Jensen Huang cosplay vibes here but I see some missing
           | elements for this approach to be very effective.
        
           | wmf wrote:
           | It sounds more like "Why are we making this chip? If you
           | don't have a good answer, it's canceled."
        
         | stefan_ wrote:
         | This guy gave up his engineering degree for business
         | administration. Actually that sounds like what Intel is.
        
         | kgeist wrote:
         | A friend of mine recently quit his job because the CEO insisted
         | on personally reviewing and approving designs. The thing is, as
         | a CEO, he was super busy with other CEO stuff, so my friend
         | could only get small time slots, like 5 to 15 minutes every few
         | days.
         | 
         | Each time, the CEO would give tons of small, random
         | suggestions, then disappear for several days before reviewing
         | again (he didn't have time before that). He'd request more
         | tweaks, then repeat the cycle. Because of all this back and
         | forth, even simple tasks that should've taken a couple of days
         | ended up dragging on for a month.
         | 
         | In the end, my friend got so frustrated with the whole process
         | that he just quit.
        
         | 0cf8612b2e1e wrote:
         | "Major" feels like a weasel word allowing for any level of
         | review.
         | 
         | Given the number of "major" chips Intel produces-weren't they
         | already being presented to the C-Suite? What stealth chips were
         | being sold without high level involvement?
        
       | samrus wrote:
       | Agentic AI? How exactly does a chip manufacturer focus on agentic
       | AI? Thats software. How does riding that hype bubble help them
       | male better chips?
        
         | wickedsight wrote:
         | For the same reason Kodak presented KodakCoin... The stock
         | price boost of joining the herd.
        
         | ZiiS wrote:
         | Wanting to be Nvidia is fairly understandable.
        
           | zahllos wrote:
           | And Intel do make GPUs.
        
           | aleph_minus_one wrote:
           | I am not sure whether NVidia's luck will continue to last as
           | it is currently.
        
         | einrealist wrote:
         | Will be answered by the ASI - soon. /s
         | 
         | But to be serious: Intel creates software too (compilers for
         | example). Nvidia does provide software too. Its also nice to
         | sell licenses.
        
         | wmf wrote:
         | This sounds like reassurance that they aren't chasing last
         | year's trends. On a technical level I don't know of any
         | difference between inference and agentic inference.
        
           | samrus wrote:
           | There is none. Thats what im saying. There is literally no
           | difference to the gpu between running a nueral network for a
           | normal LLM and for agentic AI.
        
         | curious_cat_163 wrote:
         | Oh, I don't know. Maybe build chips that do things 10x more
         | efficiently and sell them a lower cost to compete?
         | 
         | It _is_ a hype bubble but it is also an S-curve. Intel has
         | missed the AI boat so far, if they are trying to catch up, I
         | would encourage them to try. Building marginally better x86
         | chips might not cut it anymore.
        
           | samrus wrote:
           | Thats fine. Great even. But thats just normal nueral net
           | inference. Why mention agentic AI over just AI? The gpu
           | doesnt care if the inference is being done for object
           | detection or chain of thought. Intel can only make gpus,
           | their products dont care about the software at the app level.
           | 
           | Maybe they mean the more vram needed for agentic AI? but then
           | the sane thing to say would be that theyll offer more compute
           | for AI.
           | 
           | its just an unhinged thing for a chip manufacturer to say.
        
         | bongodongobob wrote:
         | Are you suggesting that agentic AI is only used to write
         | software?
        
           | samrus wrote:
           | No im saying that agnetic AI itself is software. The parts
           | that require hardware is just the neural network. The agentic
           | part is all in software. So how does intel focus on agentic
           | AI beyond just making better datacenter gpus? That like a
           | farmer saying they're gonna focus on wedding cakes; they make
           | wheat, the wehat will get used for whatever demand exists
           | down the line, they can only focus on making the best wheat
           | they can?
           | 
           | Is this just marketing?
        
         | xt00 wrote:
         | Inference / Agentic AI implies "running models performantly
         | using CPU cores" most likely (maybe with some optimizations /
         | special AVX512 stuff) -- so essentially "welp, no sense in
         | trying to build GPU's, we are too far behind nvidia to catch
         | up".
        
         | lbrito wrote:
         | Isn't hardware software-designed though?
        
         | wrs wrote:
         | Intel makes a lot of software. In addition to internal tools,
         | they try to make things go faster on their chips (e.g. the
         | Intel C++ compiler), and try to accelerate new areas of
         | software so people will need more chips (this focus varies over
         | time, of course).
        
       | pydanny wrote:
       | Return to office so you can join zoom meetings!
        
         | kazinator wrote:
         | The other day I came to the office to join a Google Meet
         | meeting. Another person near me was also in it, with their
         | laptop speaker on. I'm hearing my headphones and their speaker,
         | plus also them acoustically when it's their turn to speak. So I
         | picked up my laptop and buggered off to a small meeting room
         | where I closed the door and sat alone.
        
           | LtWorf wrote:
           | Ah well at least you got a laptop. At the office I have a
           | desktop so I can't do that.
        
         | Insanity wrote:
         | If one would be skeptical about leadership, one might assume
         | that this is a forcing function for people to quit ahead of the
         | layoffs.. :)
        
           | IshKebab wrote:
           | Yeah make the best people who can easily get a job elsewhere
           | quit. Great strategy Intel.
        
             | tayo42 wrote:
             | What companies are you all going to then?
             | 
             | There's like 10 that pay alot, actually hiring, and have
             | remote work available.
        
               | __s wrote:
               | If you're good, the people you've worked with who've left
               | before will make headcount for you where they are now
        
         | giancarlostoro wrote:
         | My favorite part about working hybrid is that no matter what,
         | nobody meets in person, except the managers once a week,
         | everything else is a Teams meeting at your desk.
        
           | konfusinomicon wrote:
           | it's called collaboration, and thanks to those sets of
           | complementary off brand noise canceling headphones that
           | welcomed you back to a desk, it's clearly increasing!
        
             | giancarlostoro wrote:
             | I find it such a darn waste. I spend anywhere from one to
             | two hours commuting on what some consider one of the
             | deadliest highways here, not sure how I-4 fares against the
             | rest of the country though. Accidents every single day it
             | feels like.
        
             | LtWorf wrote:
             | Mine aren't even noise cancelling, and are so terribly
             | designed that my skull gets painful after just 5 minutes of
             | wearing them.
             | 
             | But I can (at least for now) wfh for the most part.
        
             | 0cf8612b2e1e wrote:
             | Ha! They took away my desk, hotelling space for everyone.
             | At least when the layoffs come, easier to pack.
        
         | stevenAthompson wrote:
         | Has anyone backtested a stock bot that just shorts every
         | company doing RTO? It's clearly a leading indicator for company
         | collapse.
        
           | generic92034 wrote:
           | > It's clearly a leading indicator for company collapse.
           | 
           | So, Amazon, Apple, ... are close to collapse?
        
             | mschuster91 wrote:
             | Creatively? Yes, definitely, at least for Amazon. IMHO, for
             | that company there is an internal battle what they want to
             | be: a webshop filled with garbage or a cloud hyperscaler?
             | The way the web shop is degrading, I strongly assume that
             | Amazon will attempt to exit that business sooner or later.
             | 
             | As for Apple, I do love their hardware, but the software
             | side has seen better days.
        
         | markus_zhang wrote:
         | TBF it can also be Google Meet and MS Team ones...
        
         | wtf2025 wrote:
         | I've not ever had to experience that particular management
         | style, but I think it's the one where they don't give a rat's
         | ass about their employees or unique thought.
         | 
         | I'd also hoped that some major semiconductor company would NOT
         | embrace AI, just so they could differentiate themselves: "Our
         | shit may be too slow for the Terminator to use, but it was
         | designed by and for humans to use as air-gapped spreadsheet
         | running machines with USB-key sneakernet email."
         | 
         | Given that there is a growing backlash towards LLMs by the
         | general public (not just one writers' guild), that might sell
         | some stock.
        
         | mandevil wrote:
         | I feel like one of the under-appreciated problems with modern
         | society (1) is the sheer quantity of lies we are surrounded
         | with. RTO is just the current most blatant example ('this will
         | make you more productive/more efficient/more creative'
         | whatever) in the American economy of people saying lies knowing
         | that they will never be held to account for those lies. All of
         | these lies together are corrupting and destroying civil
         | society, destroying the sense of trust necessary for people to
         | work together, to respect and trust institutions, and to build
         | a better world.
         | 
         | As the excellent series Chernobyl put it (in the words crafted
         | by a writer, not an actual scientist) "Every lie we tell incurs
         | a debt to the truth" and at some point someone is going to have
         | to pay all of those debts.
         | 
         | 1: Here I'm focusing on Anglosphere/largely US and UK
         | societies, as a monolingual American that's all I can
         | effectively comment on.
        
         | hibikir wrote:
         | I know a place doing RTO where most teams are at least 50%
         | contractors from Central and South America. You can imagine how
         | productive the office might be for those people, given that
         | everyone is on zoom all day, and there's a whole 4 meeting
         | rooms in a floor with 50 people.
        
       | bearcobra wrote:
       | In the context of the the lack of confidence investors seem to
       | have in Intels long term vision this makes sense but it really
       | doesn't feel like a good sign for their future
        
       | enraged_camel wrote:
       | Intel is circling the drain. At this point I'm of the opinion
       | that the sooner it dies the better. Its death will probably
       | result in a lot of spin-offs and startups, which might be what
       | the US chip industry needs.
        
         | duped wrote:
         | The federal government won't let Intel fail.
        
           | Mistletoe wrote:
           | Maybe this is why they and Boeing are such a mess. The rich
           | kid that can't fail usually is a total screwup.
        
             | rwmj wrote:
             | The failson theory of business. Someone should write a
             | book.
        
           | scheeseman486 wrote:
           | They may let them get bought, though.
        
         | sshtml wrote:
         | They've already spun off their RealSense camera/sensor product
         | line.
        
         | mullingitover wrote:
         | It'll never happen. It's the standard US playbook:
         | 
         | - Allow industry to consolidate to a tiny group of winners, or
         | just one winner
         | 
         | - Turn a blind eye to anticompetitive behavior in the
         | marketplace
         | 
         | - Protect the uncompetitive winner from innovative global
         | competitors
         | 
         | - Bail it out because national security depends on it
         | 
         | It's funny because we don't have socialism, government doesn't
         | 'own' heavy industries, but at the same time the major firms
         | will obviously never be allowed to fail on national security
         | grounds.
        
         | curious_cat_163 wrote:
         | That's an interesting way to look at it.
         | 
         | Aren't layoffs a version of that? Are we seeing any evidence
         | that folks who have been let go from Intel have resulted in
         | spin-offs and startups?
         | 
         | I know at least one person who went to work at Nvidia from
         | Intel but that is neither of those things.
        
         | baq wrote:
         | already started happening in Oregon, which will probably be hit
         | the hardest.
        
       | akmarinov wrote:
       | > 15% headcount reduction to 75,000
       | 
       | > Return to office in September
       | 
       | So 15% reduction now and another stealth reduction in September
        
         | hn8726 wrote:
         | The letter says
         | 
         | > we plan to end the year with a global workforce of about
         | 75,000 employees as a result of workforce reductions and
         | attrition
         | 
         | so it looks like the explicit reduction might be lower, but
         | accounting for people leaving on their own, the final amount of
         | employees should be ~75k
        
         | GuinansEyebrows wrote:
         | "attrition" is in the plan :)
        
           | rwmj wrote:
           | And if we get them to resign, we save money on redundancies.
        
       | spwa4 wrote:
       | TLDR: "we've gotten ourselves into deep shit by saving money for
       | shareholders. That caused a financial disaster so we'll fire 15%
       | of you and save some more money. What could go wrong?"
       | 
       | Some mutterings were heard about the definition of insanity ...
        
         | Tuna-Fish wrote:
         | That's not really what got Intel into deep shit. They got where
         | they are now by ignoring the main business, and spending giga$
         | on every trend they could stumble headfirst onto. The money
         | returned to the shareholders was reasonable, all the written
         | down acquisitions and failed product lines were not.
         | 
         | So far as the firings concentrate on all the ancillary stuff
         | that Intel shouldn't have gotten into in the first place, it's
         | positive.
        
       | atleastoptimal wrote:
       | Intel is in freefall. This seems to happen to most American
       | companies that fail to reinvent themselves.
        
         | rvba wrote:
         | Jack Welch thought strikes again
        
         | deelowe wrote:
         | I've worked under their leadership. Toxic does not begin to
         | describe it. I'm not surprised at all they are in this state.
        
           | dlivingston wrote:
           | Anything juicy you can share?
        
       | computegabe wrote:
       | > 2. Revitalize the Intel x86 Ecosystem
       | 
       | Extremely sad. What's the justification for ignoring ARM /
       | RISC-V?
        
         | tomrod wrote:
         | $$$+patents
        
         | Tuna-Fish wrote:
         | What competitive advantage does Intel have with either of
         | those? ARM winning would be a catastrophe for Intel, and RISC-V
         | would only be slightly better.
         | 
         | But the main reason to focus on x86 is that it has 47 years of
         | existing software built for it, and with the high end mostly
         | still on it, more gets made every day.
        
           | samrus wrote:
           | Thats like saying why should kodak focus on digital cameras.
           | Intel could throw its muscle behind RISC-V and beat the other
           | big boys there
        
             | Panzer04 wrote:
             | There's no fundamental difference between risc, arm and
             | x86. It looks like when all else is equal (fab, die size)
             | the chips tend to have about the same performance
             | characteristics - so why mess with what's working?
        
               | dom96 wrote:
               | If there is no fundamental difference, then why aren't
               | there more x86 mobile phones out there?
        
               | trynumber9 wrote:
               | Likewise, why are there more x86 mobile phones (e.g.
               | anything with Z3580) made than RISC-V mobile phones?
        
         | trynumber9 wrote:
         | AMD is making money on x86 servers. Is anyone making money
         | doing commodity (i.e. not captive) ARM / R5 server chips for
         | sale? Ampere is losing money and hoping for acquisition.
        
       | micromacrofoot wrote:
       | "We're mad about NVidia and we're taking it out on you"
        
       | poszlem wrote:
       | "Streamline" must be one of the most weaselly buzzwords floating
       | around today's corporate jargon, and, for some inexplicable
       | reason, LLMs seem particularly fond of it too.
        
       | AdmiralAsshat wrote:
       | No love lost for Intel if it goes away, other than that their
       | Linux support has historically been great.
        
         | CoastalCoder wrote:
         | I wouldn't be thrilled about AMD having a de facto monopoly on
         | x86 production through.
         | 
         | Granted, ISA is less crucial than it used to be, but there's
         | still a lot of x86 binaries in the world.
        
           | heraldgeezer wrote:
           | >Granted, ISA is less crucial than it used to be
           | 
           | Depends on what you do.
           | 
           | Gaming PC = x86
           | 
           | Work laptop = x86
           | 
           | So AMD or Intel. "Switch to Mac" means ripping out the whole
           | MS management stack. Or keep/move to 365 and Intune but tune
           | it to Mac. Or keep 365 but move management to Jamf. Can be
           | done ofc, but it's a process.
           | 
           | That's how I still see it. Maybe I'm out of touch :)
        
       | TechDebtDevin wrote:
       | Its happening, the CEO's are using ChatGPT to write the letters
       | they use to lay off people with. What an awesome future!
        
         | meepmorp wrote:
         | I for one would welcome our new AI overlords a bit more if
         | C-suite jobs were the get first ones LLM'd into obsolescence.
        
       | cherryteastain wrote:
       | > we have decided not to move forward with previously planned
       | projects in Germany and Poland
       | 
       | Did they end up getting any German/EU money to build that cutting
       | edge foundry? EU's chip strategy seems to be in shambles, and
       | they took their eyes off the ball since the end of the Covid chip
       | crisis.
        
         | mgol94 wrote:
         | They were planning to receive $1.8bn of aid from Poland[0], not
         | sure how much they actually received
         | 
         | [0] https://www.gov.pl/web/cyfryzacja/inwestycja-intela-w-
         | polsce...
        
       | whatever1 wrote:
       | So cut headcount and pray that things will get better! Inspiring
       | vision! It will definitely work !
        
         | stevenAthompson wrote:
         | You're missing the point. Sure, they're going to just keep
         | doing what they've always done, but this time they're going to
         | do it HARDER and with 15% fewer people!
        
           | javier2 wrote:
           | So just like the plan they executed in 2023 and 2024! It must
           | start working at some point right?
        
         | ryandrake wrote:
         | It wouldn't be the first time an Intel CEO resorted to
         | prayer[1] as their business implodes.
         | 
         | 1: https://www.threads.com/@masiosare/post/C-SoS6qJbU6?hl=en
        
           | combinator_y wrote:
           | lol I forgot about this one, Intel have a very big collection
           | of weirdo execs I guess.
        
         | givemeethekeys wrote:
         | The beatings will continue until morale improves. Layoffs and
         | Return to Office!
         | 
         | Imagine doing what all your competitors are doing while being
         | one of the least desirable big tech companies to work for.
         | 
         | What could possibly go wrong? /s
        
           | gishglish wrote:
           | > Imagine doing what all your competitors are doing while
           | being one of the least desirable big tech companies to work
           | for.
           | 
           | Good thing you have very few of them because your industry is
           | way too capital intensive to start a competitor now.
           | 
           | I am generally curious what capitalisms proposed solution to
           | this problem is.
        
       | tumidpandora wrote:
       | what does "50% streamlining of management layers" mean?
        
         | shawabawa3 wrote:
         | My understanding is that say the average employee had 6 levels
         | of management up to CEO before, now they have 4
        
         | lnkl wrote:
         | Nothing, really
        
         | rwmj wrote:
         | I'm assuming they look at the org chart, measure the max depth
         | from the CEO to the lowliest employee, and cut that number by
         | half. It's actually the least worse thing in this letter.
        
           | hibikir wrote:
           | Depending on which layers they cut. I know of a company that
           | last year cut the bottom layer of management, giving managers
           | an average of 20 reports. Maximum disruption
        
         | wmf wrote:
         | Four layers instead of eight? A large company could easily have
         | IC -> manager -> senior manager -> director -> VP -> SVP ->
         | CxO. Maybe Intel was even worse.
        
           | fullstackwife wrote:
           | Practically it is more than eight, because when multiple
           | branches of managerial deposits cross on the project you are
           | working on, all of sudden your work depends on decisions of
           | dozens of people and their management chains.
           | 
           | Cutting this to four may give compound effect, but IMO this
           | is focusing on the symptoms instead of the real causes like
           | for example people being territorial or obsessed about their
           | promo package. Convoluted managerial chain is often just a
           | weapon to achieve your hidden agenda.
        
           | unethical_ban wrote:
           | Including CEO, I have eight people in my management chain.
        
           | belval wrote:
           | You should see Amazon, some are CEO (Jassy) -> AWS CEO -> SVP
           | -> VP -> VP -> Director -> Sr Manager -> Sr Manager -> Sr
           | Manager -> Manager -> IC
        
         | rvz wrote:
         | For those employed, the word "streamlining" is never good.
        
       | generationP wrote:
       | When I get fired, the news better come in an email titled "Steps
       | in the Right Direction".
        
       | rybosworld wrote:
       | Rant:
       | 
       | There are too many companies out there that started with a good
       | product/service - and then bureaucrats took over. Smart companies
       | minimize layers of management, and manager headcount. Bad
       | companies don't - and they eventually are unable to
       | grow/innovate. A shockingly high percentage of corporate America
       | is parasitic management.
       | 
       | Intel happens to be in an industry that moves so fast that this
       | doesn't work for long, relatively.
        
         | readthenotes1 wrote:
         | About 70 years ago, C Northcote Parkinson (of Parkinson's Law
         | fame) wrote an essay on "injellitance" that you might enjoy.
        
           | wslh wrote:
           | More here, Forbes 1989 article:
           | https://adamsmitheconomics.wordpress.com/2010/05/02/how-
           | do-y...
           | 
           | It seems like the author of this article requires another
           | reference: https://en.wikipedia.org/wiki/Peter_Brimelow
        
         | AdrianB1 wrote:
         | It is not the layers of management that is the problem, it is
         | the quality of management. While great engineers mind their own
         | business and deliver great products, the people that are not
         | great engineers manage their way into management. They are more
         | and more incompetent and corrupt and this is killing the
         | companies, slowly or not that slow. So it is incompetent and
         | corrupt management, not too much management.
        
         | javier2 wrote:
         | Either way, Intel needs to get their new fabs sorted out and
         | improve their products. There will be money to be made if Intel
         | can get back the energy efficiency crown. The GPU division are
         | starting to actually enter the lower market segment, but
         | drivers leave a lot to be desired. Reducing work force even
         | more just tells me they have no clue how to fix these issues
         | and are grasping hard.
        
           | donmcronald wrote:
           | It's not just drivers. I'd line up to buy a a couple 24GB
           | B580s to play around with local AI, but they're only going to
           | be available in workstation systems. When it gets to the
           | point where you're losing, but still won't sell people things
           | they want, I think it's a good indicator that management is
           | just plain dumb.
        
         | LtWorf wrote:
         | My company is increasing the manager headcount greatly! I
         | suspect it's related to changing to a CTO from USA instead of
         | one from EU.
         | 
         | I don't even know who my boss actually is now.
        
       | mlsu wrote:
       | Another flipflop. Canceling the Germany fab, bringing SMT back.
       | 
       | > Looking further ahead, we're developing Intel 14A as a foundry
       | node from the ground up in close partnership with large external
       | customers. This is essential to designing a process that meets
       | specific customer requirements and enables us to address a
       | broader segment of the market. Going forward, our investment in
       | Intel 14A will be based on confirmed customer commitments. There
       | are no more blank checks. Every investment must make economic
       | sense. We will build what our customers need, when they need it,
       | and earn their trust through consistent execution.
       | 
       | are these large external customers in the room with us right now?
        
         | wbeckler wrote:
         | I hope that pun is intentional.
        
       | F0UKYOU-HN wrote:
       | Just the CEO giving 'Lip' service...
        
       | papichulo2023 wrote:
       | The most of interesting part for me is the acked that dropping
       | SMT was a mistake. I wonder if this means the end of E and P
       | cores.
        
         | jeffbee wrote:
         | They are saying SMT for data center. There are no heterogeneous
         | Intel CPUs for that market, right?
        
       | rvz wrote:
       | I see lots of doomers in here talking about Intel failing. Well,
       | the truth is the government will just bail them out again.
       | 
       | But instead let's discuss some turnaround suggestions, starting
       | with:                  (1) Acquiring at least one or two AI chip
       | technology startups. (Lightmatter, Cerebrus, etc)             (2)
       | Assembling an AI hardware research team focused on efficient AI +
       | software compatibility with existing AI accelerator libraries.
       | (3) Investing heavily in the PyTorch team at Intel.
       | 
       | (1) is the most important and urgent action that Intel can do to
       | sort out their issues.
        
       | johngalt wrote:
       | The strangest part to me about the current trends: why do all
       | these business leaders all do the same things at the same time?
       | E.g. Layoffs + micromanagement + cost focus etc... Is this truly
       | about macroeconomic forces that every business is responding to?
       | Or is it just following the latest fad?
       | 
       | There seems to be significant opportunity to zig as others zag.
       | Imagine the Intel letter saying "we are going to take advantage
       | of the current hiring environment to scoop up talent, and push
       | forward on initiatives."
        
         | Lammy wrote:
         | Same as it ever was except they learned not to write it down
         | lol https://en.wikipedia.org/wiki/High-
         | Tech_Employee_Antitrust_L...
        
         | ryandrake wrote:
         | It's almost as if CEOs aren't really that smart or creative,
         | got to their position through mostly politics, and look
         | externally for clues about what to do.
        
           | thbb123 wrote:
           | CEOs like to brag about how AI is going to replace skilled
           | workers. Yet, it should be obvious to anyone having
           | experience in LLMs that top executives are the jobs that are
           | most likely replaceable by AI.
           | 
           | Just keep smooth talking everyone into cost reductions and
           | make arbitrary decisions to make it feel like you're actually
           | in charge.
        
             | dylan604 wrote:
             | Wouldn't that be funny to see an AI bot replace the CEO of
             | something like Boeing, and then see the company turn around
             | in positive moves? Feed an LLM all of the business data
             | that a CEO would have and then ask it to make the same
             | decisions the CEO would be expected to make. Since layoffs
             | would be the trend online for LLMs to train on, would they
             | come up with slop that looks like they too follow the
             | trends? If companies are willing to replace dev with AI,
             | why are boards not looking at all of the C-suite offices
             | with the same mindset?
        
               | DaveZale wrote:
               | Same with the Federal Reserve. Why not continuously
               | adjust interest rates, instead of all of Wall Street
               | agonizing over each decision made?
        
               | dylan604 wrote:
               | How would not adjusting vs always adjusting be any
               | different? Is it not a made decision to leave it alone
               | and not change it?
        
               | 90s_dev wrote:
               | It seems to me that a large percentage of jobs exist just
               | to exist, and that they use their continued existence to
               | justify their continued existence. I wonder how much the
               | world would keep spinning if 90% of people were laid off.
               | Maybe we'll find out if AI is adopted widely enough...
        
               | meindnoch wrote:
               | You can't put an LLM in charge of a company. You need an
               | actual human to take legal responsib- oh, wait a
               | second...
        
             | andsoitis wrote:
             | > anyone having experience in LLMs that top executives are
             | the jobs that are most likely replaceable by AI.
             | 
             | That's not my assessment. Why do you say that?
        
           | DaveZale wrote:
           | same with directors. BODs are incestuous, inbred.
           | 
           | The letter seemed contradictory: be a factory, but innovate
           | on AI. Is AI actually smart? Human brains use the power of a
           | dim incandescent light bulb, why does AI require so much
           | power, that the processing chips overheat?
           | 
           | Sure, selected tasks can be done orders of magnitude faster,
           | but do we, for example, really need that kind of output, like
           | pi to a trillion digits? Or AI controlling stock market
           | trading? How much liquidity is necessary for traders other
           | than huge funds?
        
         | jrk wrote:
         | Intel's situation in 2025 is not comparable to the rest of big
         | tech. They have lost technical leadership, bled market share,
         | and started losing a ton of money in a hugely capital-intensive
         | business. They are actually in need of major triage to survive,
         | not just hopping on a belt-tightening trend among still-
         | massively-profitable software companies.
        
           | mbac32768 wrote:
           | Yes this. Intel is in deep shit. This is exactly the thing
           | you'd expect their new CEO to say right now.
        
         | vchere wrote:
         | The reason is always a secret coalition with a cool hand sign
         | like the Illuminati.
         | 
         | But speaking of combining forces, Microsoft will be more likely
         | to pick them up in a fire sale now, which I think would be best
         | for all involved. Then you're a couple of M&As away with first
         | Dell and then Oracle.
         | 
         | Then they will select a champion to fight the Pentavirate at
         | The Meadows!!
        
           | slefsacrifice wrote:
           | > the Pentavirate at The Meadows!!
           | 
           | Nice "So I Married an Axe Murderer" reference!
           | 
           | It appears that Lip-Bu used an LLM to help write this memo.
           | Also: 15% of staff with an arbitrary 50% management? Boy, he
           | must have been up all night working on that one! Maybe
           | everyone can have an ice cream social when they return- bring
           | your own.
        
         | cyberax wrote:
         | > The strangest part to me about the current trends: why do all
         | these business leaders all do the same things at the same time?
         | 
         | Because they all studied the same MBA programs.
        
         | inetknght wrote:
         | > _why do all these business leaders all do the same things at
         | the same time? E.g. Layoffs + micromanagement + cost focus
         | etc... Is this truly about macroeconomic forces that every
         | business is responding to? Or is it just following the latest
         | fad?_
         | 
         | I thought about this a lot over the years.
         | 
         | I saw something that piqued my interest last year though, and
         | kind've helped connect the dots. I was on a cruise, and most of
         | the ship was available to guests. One day, one room was
         | cordoned off to an invite-only meeting. The windows weren't
         | blocked, but on the screen was a presentation about AI
         | investments, number of jobs saved (reduced), and etc.
         | 
         | I found one of the attendants later during the voyage and
         | chatted her up. She was head of HR in some big company, and the
         | meeting was supposed to be private. But it contained _a lot_
         | more than just spreadsheets about AI investments. There was
         | homework and whatnot, but the attendees weren 't all from a
         | single company. It was "direction setting". I don't think it
         | was Intel (topic under discussion) but certainly some loosely
         | related tech industry.
         | 
         | I'm convinced that it was nothing less than business collusion.
         | 
         | So, back to your question:
         | 
         | > _why do all these business leaders all do the same things at
         | the same time?_
         | 
         | Because they're told to.
        
           | mathgeek wrote:
           | > I'm convinced that it was nothing less than business
           | collusion.
           | 
           | Wonder if it's "not illegal" if it's done in international
           | waters.
        
             | inetknght wrote:
             | > _Wonder if it's "not illegal" if it's done in
             | international waters._
             | 
             | I didn't ask. As I understand it, it's less about legality
             | and more about plausible deniability; on a "party boat"
             | with plenty of other public people to make it cheaper than
             | renting a whole boat, plus the week for the cruise and time
             | to relax -- seems plausible that these people "just
             | happened" to book the same boat at the same time at peak
             | tourist season and decide to throw a "private party". I
             | should have asked more questions, but there were plenty of
             | other people to chat up.
        
           | wahnfrieden wrote:
           | Heaven forbid the workers within or across any of these
           | companies also consider coordinating on anything
        
             | markus_zhang wrote:
             | The elites definitely unite first.
        
             | lbrito wrote:
             | That would be (gasp) _communism_!
        
               | cebert wrote:
               | Unionization isn't necessarily communism.
        
           | DragonStrength wrote:
           | The Capital Order lays out an argument that austerity
           | measures are ultimately labor suppression, not necessary. Of
           | course, that's true of many pieces of policy wisdom: they
           | start from an assumed good. In this case, the assumed good is
           | the current winners should remain the winners despite, well,
           | losing.
           | 
           | https://www.amazon.com/Capital-Order-Economists-Invented-
           | Aus...
        
           | saubeidl wrote:
           | The capitalist class has always conspired to keep labor down.
           | 
           | Meanwhile, a lot of laborers in our profession have fallen
           | for their propaganda of markets and so-called meritocracy,
           | not realizing they have more in common with the fruit picker
           | than their common exploiter.
           | 
           | Class warfare is real. It's time tech workers wake up to that
           | fact and start fighting back instead of letting oligarchs
           | walk over them.
        
         | Alupis wrote:
         | Many times it's a "watershed" moment.
         | 
         | Most of these businesses are feeling the same pressures and
         | experiencing the same problems... in silence. Eventually one of
         | their competitors breaks (because they are forced to due to
         | economic realities, etc) and starts making necessary moves
         | (layoffs, efficiency improvements, etc). The rest follow-suit,
         | breathing a collective sigh of relief that they weren't the
         | first to make all the headlines.
        
         | markus_zhang wrote:
         | There are CEOs and there are CEOs. My hunch is, most of them
         | are just managers pushed out by investors, who have interests
         | in multiple companies, maybe even multiple industries. That's
         | why they coordinated so easily.
         | 
         | But there are CEOs who define an industry. Those are not easily
         | swayed by big capital.
        
         | kindkang2024 wrote:
         | > _why do all these business leaders all do the same_
         | 
         | Simple. These companies need enough 'fitness' in order to
         | survive and thrive. No one has the power to fight against
         | Nature's Wille--survival of the fittest, especially when
         | standing in the face of life-and-death competition.
        
       | DebtDeflation wrote:
       | He will announce they're selling the foundry business within the
       | next 12-18 months. I'm certain of it.
        
         | cubefox wrote:
         | To Nvidia?
        
         | donmcronald wrote:
         | That would suck.
         | 
         | I bought INTC to hold for 10-20 years based on the promise of
         | long term investment in domestic manufacturing. I didn't care
         | if they took a decade to battle back. Seeing them sell of the
         | foundry business would be enough for me to cut my losses before
         | the titanic hits the ocean floor. They'd be a walking corpse at
         | that point IMO.
        
       | heraldgeezer wrote:
       | Hyberbipeline is back :DDDDDD
       | 
       | https://imgur.com/a/dvUSgA3
       | 
       | Honestly, good. AMD is amazing for laptop/desktop and server now,
       | but may flop like Intel did. Always good with competition. But I
       | need a new CPU and right now AMD is king.
       | 
       | Phone only plebs need not apply.
        
       | lynguist wrote:
       | Intel headcount in 2022 was 131,900. Intel's projected headcount
       | for 2025 is 75,000. Intel fired 43% of its staff over the course
       | of 3 years (when approximating natural retirements at zero and
       | assuming a stop in new employments).
        
         | tibbar wrote:
         | It's honestly impressive. Even during the major tech cuts of
         | 2022-2023, I think many companies ended up about the same size
         | or a even little larger over the course of a year, due to all
         | the other hiring happening and the fact that the cuts may have
         | partially overlapped with existing performance management
         | anyway. 43% an incredible shrinkage for any company in such a
         | short timescale.
        
       | iamleppert wrote:
       | You can tell from the tone of this letter and the bizarre
       | reference to agenetic AI he is completely clueless. Compare this
       | to someone like Jensen, a nerd's nerd who gets up on stage with
       | the latest GPU, can talk about new CUDA API's and goes deep on
       | specs like memory bandwidth. He knows exactly who his customer
       | is, and what kinds of workloads they run for AI.
       | 
       | It's just such a massive difference. You can tell Lip-Bu spends
       | his weekends playing golf while Jensen is checking out the latest
       | model from Huggingface.
       | 
       | You can't buy passion or genuine interest in what you're doing.
        
         | fossuser wrote:
         | It's one reason why founders matter so much and why founder led
         | companies often have better outcomes.
         | 
         | Intel is in trouble, it's not clear how or if they'll be able
         | to get out of the hole they're in. Their only saving grace is
         | natsec concerns and even that may not be enough to save them. I
         | was hoping Gelsinger would be able to do it, but it was too
         | late.
        
       | combinator_y wrote:
       | An excellent MBA bs soup summary from the retard in chief :
       | 
       | - "50% streamlining of management layers" : fire 50% and make the
       | others do 200% ? or send some the lower level/tech roles ?
       | 
       | - "Return to office in September" : yeah good luck with that,
       | people will comply, your efficiency will go down at least for the
       | upcoming 2Q.
       | 
       | - "projects in Germany/Poland halted" : cheaper labor than the US
       | with same talent depth.
       | 
       | - "Refocus AI strategy to inference and agentic AI" : holly F,
       | how can he be as retarded as this, they should go all in on
       | inference and get better at IT, after all this their domain (i.e
       | hardware). Agentic AI means inference and shit tone of AI/ML
       | domain specific stuff, which they don't have and it's too late to
       | catch unless they acquire a big player.
        
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