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In a town hall announcing the layoffs, the company said it would "cancel complimentary fruit and beverage" and "right-size dining programs," according to a
The announcement came as Intel posted a
Things don't look too bright for the future either as Intel said it expects to post a loss again this year during Q3 and will stop paying out a dividend altogether starting in Q4, presumably to save money.
Investors weren't too happy with the announcements and pummeled the stock so hard that it
Intel employees weren't happy either as the company announced a 15% headcount reduction as part of a broader cost saving plan to conserve $10 billion. According to
"Our revenues have not grown as expected – and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low. We need bolder actions to address both," Intel CEO Pat Gelsinger said in a memo to employees after announcing the Q2 results.
As Gamers Nexus put it, Intel is perhaps one of the only big tech companies that, despite following the AI fad, is losing out. No wonder then why the Wall Street Journal put out a news piece saying Gelsinger’s dream job had
"This is the hardest thing I’ve done in my career," Gelsinger said, which perhaps explains why he
In some ways, things have gone full circle. Intel dominated the chip market in the 80s and the 90s, and was a titan of the industry at the time
"Intel has been one of the forgotten horsemen of technology the last couple decades - never overtaking its year 2000 highs and struggling to get earnings back to where they were before the AI revolution," Michael Schulman, chief investment officer of Running Point Capital, was quoted as saying by
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Intel's
In fact, for a long time, Intel's engineers found the video gaming chip architecture (which was far superior in AI intensive loads) as "ugly," and the company's management believed that a CPU could more effectively handle processing tasks needed to build and run AI models. Both sides were
Ironically, Intel was this close to
Instead, the company was caught with its pants down when the AI boom hit: without a chip that could meet businesses' demand.
The company says it is working on launching an AI chip in 2025 that would contend with what's on the market right now, but who knows how that would compare to Intel's competitors, and how much more the company would have lost by then.
As somebody from Hacker News
This was Part 2 of HackerNoon's round up of quarterly earnings.
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