On April 19, 2016, in an email to employees, Intel CEO Brian Krzanich, announced a major restructuring effort.
“Since I became CEO nearly three years ago, I have been working with our leadership team and all of you to transform our company from a PC company to a company that powers the cloud and billions of smart, connected computing devices. The data center and Internet of Things businesses are now Intel’s primary growth engines, and combined with memory and FPGAs, form and fuel a virtuous cycle of growth. Together, these businesses delivered $2.2 billion in revenue growth last year, made up 40% of our revenue, and the majority of our operating profit."
"We expect that this initiative will result in the reduction of up to 12,000 positions globally. This will be achieved by voluntary and involuntary departures, global site consolidation, and efficiency initiatives. The majority of these actions will be communicated over the next 60 days, with some spanning into 2017.”
The handwriting was clearly on the wall and nobody should really be surprised that Intel would be announcing additional layoffs, this time approximately 65 employees at three of Intel’s Silicon Valley campuses.
According to Intel spokesperson, John McKimmey … “Intel has decided to reduce its workforce by laying off approximately 65 employees at its facilities. Additional benefits including payment based on years of service and career transition service will also be offered to employees in exchange for a standard release agreement.”
Of course, by “standard release agreement,” Intel means non-disclosure agreement not to speak to anyone about the layoffs or other company business.
It should be noted that Intel’s layoff policies are being examined by the U.S. Equal Employment Opportunity Commission over allegations of age discrimination in previous layoffs extending back to 2015. Intel categorically denies any allegations that it targeted older employees in the layoffs saying, “Factors such as age, race, national origin, gender, immigration status, or other personal demographics were not part of the process when we made those decisions.”
There is little or no doubt that the chip marketplace is changing especially with the move away from desktop and laptop computing to mobile devices and the lightweight browsers used to connect users with the growing cloud services marketplace. For many years, I was a purist, insisting on Intel motherboards, chipsets, and processors for our numerous system builds. Today, I have no such concern and am willing to accept anything that works.
Are you asking yourself, Am I Next?