Excellent post. Hire U.S. graduates and train them. It worked for a long time and created a great high tech eco-system in this country. On the other hand, keep shipping jobs and knowledge out of the country and see how hard it becomes to find technical leaders for your fab, design and r&d centers. Just try and find an experienced wafer fab engineer these days....
I wonder what the message to our young people in the US is. Our industry asks for more H1B Visas because we cannot get enough people working in our industry. We also struggle to recruit young people to choose related technical fields in their studies. Then, there are massive layoffs at IBM, HP, Intel and so on. What message do these layoffs tell to our potential young talent which we try to recruit? Why would a young woman or man want to work in this industry when job security is like a roller coaster? These layoffs have a much deeper impact long-term on our industry and society than we comprehend. Is it really worth just to save a "few bucks" or to satisfy the stock market?
Another newsite (maybe the Oregonian? I can't recall) mentioned that normal turnover at Intel is 4% annually. But attrition and hiring freeze isn't enough becausee there are strategic considerations of who to keep, even who to add, while aiming for that target number on your salary spend. Best wishes to all.
The question now is which workers will Intel lay off, why and how? And if they aren't laying workers off, exactly how will they be able to reduce the workforce? It will be a combination of things, certainly, but there's no avoiding that five percent is a significant number and difficult to attain.
it may also be somewhat attributed to the big interface changes that happened with these releases. Vistan looked different than XP, but 7 kept the vista look. 8 looks different than vista/7 etc. Maybe 9 will be the same as 8, but more of a success.
I like the look of 8, but admittedly haven't had much of a chance to test drive it yet.
I remember that Windows 6 AKA "Vista" was also a disaster for Microsoft. It seems they have trouble with even-numbered releases. A lot of business users stuck with XP and Microsoft decided to extend the life of XP. Many users replaced Vista on new machines with XP so that software and device drivers would work.
I suspect that a lot of XP machines are out there to support old software, and when XP is no longer supported the users will simply take those machines off the Internet to protect them from malware. Given the amount of re-learning to switch from XP to Windows 8, I also suspect that a lot of users will switch to Ubuntu or other GNU/Linux distros because they're less of a leap. Plus, a lot of users really only need a browser and a Chromebook becomes a lot less of a headache than administering a full-blown OS. IMO, the thing that's holding back Chromebook is that the screens are too small. With a bigger screen, they become a perfect solution for many users.
If you look at a Dell catalog, computers for professionals all come with Windows 7 and computers for people who don't know any better have Windows 8. Sounds like the marketplace has made its decision.
Every year that Microsoft came out with a new version of Windows, there was a burst of PC purchases, except for Windows 8. When it came out, we saw the largest drop in PC sales in history.
Whether it is because of people not liking Windows 8, or because of lots of people using tablets or smartphones (with ARM processors) in place of desktops, I'm not sure. But I can see how Intel could have misjudged the market. Acer, HP, and Dell are also hurting.
The light at the end of the tunnel is XP. Lots of companies (where tablets will not replace desktops) still have a lot of machines running XP. This year Microsoft will stop supporting it, and a lot of companies will switch to Windows 7, and maybe Windows 8 for the more adventurous. I can see a lot of these PCs getting upgraded in the process.
So the end of XP may have the same effect that new Windows OSs used to have. Maybe Intel shouldn't be canceling that new fab or be doing cutbacks just yet.
B-School students will study this in the future, guarentee. Like Nucor steel with mini-mill taking down US Steel monopoly by attacking at the side. You cant attack a sustaining innovator in its primary market. Didnt work for AMD. Foundry players drive aggressively down prices and make parts that are unattractive from Intel margin standpoint for years. Then the market shifts and foundry is positioned to succeed and intel takes a beating. What happens next an entire industry is watching..
I don't believe Intel will be able to hit its target strictly through attrition. Intel has been offering early retirement packages to manufacturing personnel for over a year, but few have been willing to accept the package. There is no doubt that some of this will come from manufacturing, but I believe additional reductions from the product groups may be necessary by the end of the year, especially if margins are impacted by competition, such as from ARM-based server processors.
There's probably no disputing the technological achievements over the years. But see how suddenly a change of business climate affects the originally successful business model and the need to deploy originally planned new technology.
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