On Thursday, Intel announced the layoff of 15,000 workers. It's quarterly report was "dissappointing." Intel revenue is not growing anywhere near what the company needs or projected. "We must fundamentally change the way we operate," said Gelsinger, the company's CEO. The company needs to cut $10 Billion (with a "B") from its bottom line just to make the quarter rational. Instead of a profit, the company posted a $1.6 Billion (yep) dollar loss. The company plans to simplify its portfolio and suspend its stock dividend. I'm sure that will have the stockholders flocking to buy Intel. Those of us who have watched the company cede markets that were once its bread and butter are not surprised.
Is it cooked? Well, its big and big things are usually hard to kill. But, it has happened before.
Having been part of the PC business - granted only from the consumer side - more or less since its inception I find it interesting how they have all more or less followed the model for how businesses are born, grow, become stagnant and then decrepit. But in this case it is in such a compressed time frame. I really wish some business historian/economist would take on the challenge of writing the Rise and Fall of the PC/Chip business. I think e are ready to face the music.