“Intel is preparing a significant round of job cuts across business units this spring, according to multiple sources inside the company familiar with its plans.”
See Intel planning for thousands of job cuts, internal sources sayI wouldn’t normally repeat rumours but this one is in line with my thesis that Wintel is being replaced with polytheism in IT. This cut or non-cut in employment is significant because if true, it would be an indicator that those at the helm do see the writing on the wall and are heading it off long before there is a serious cut in margins, growth or profitability. The problem is not necessarily with their technology but with the corporate structure which has built up layers of inefficiency as the world bought product it didn’t need at whatever price Intel demanded.
All the steps in Moore’s Law and releases of TOOS have Intel fighting medieval wars with bigger walls and heavier stones rather than with agile technology good enough to do the jobs people have. Intel’s stuff certainly works well enough on servers where the cost of labour is low and all that matters is the cost per transaction, millions of them per second. You can pay just about any price for a machine-gun if it wins your battles. It’s rifles that the world’s IT uses and because there are so many more rifles in use than machine-guns the price matters in every budget. Intel has been part of the slowdown of Wintel, charging last decade’s prices per CPU rather than 21st century prices. At the same time, an army really doesn’t need a different rifle every three years or 12 types of rifle when one or two will do. Reality is creeping in.
Shortly, we should have Intel’s announcements of financial performance and perhaps clarification of the extent and nature of cuts. There wasn’t much of a clue in Intel’s latest announcement about reorganization. It’s about time Intel used its licence to make ARMed devices if they are competing with others along that line. x86 certainly doesn’t compete well against billions of devices that are good enough instead of being whatever comes down the pipe. Stay tuned.