- > With that in mind, we have reduced our operating expense and capital spending targets going forward, which I will discuss during our investor call this afternoon.
I wonder what this really means. Operating Expense = R&D + Marketing/Admin + Misc. stuffs.
> In addition, I have decided to make our formal Insights and OKR requirements optional. While it’s crucial for us to stay accountable for our results and receive feedback on our performance, I believe we can achieve this in a simpler and more flexible way. Along the same lines, we will cut back on time-consuming corporate administrative tasks such as non-essential training and documentation.
This seems to be an interesting take. For every company that I worked for, or are working for, the only direction when growth dies down is to introduce OKRs (if there is none), or flash the importance of OKRs.
> It’s going to be hard. It will require painful decisions. But we will make them knowing it’s what we must do to serve our customers better as we build a new Intel for the future – and I have great confidence in the power of our team and our people to make it happen.
Kinda reads like more layoffs, and potentially large layoffs. Maybe it is already ongoing as per my experience with large corporations.
- On the "reads like more layoffs" comment, word is out that they plan a 20%(!) reduction of workforce (e.g., https://finance.yahoo.com/news/intel-cut-over-20-workforce-0...)
- Wow that's really a lot. The article doesn't say much, but I suspect they are going to get rid of whole business units.
- "I wonder what this really means. Operating Expense = R&D + Marketing/Admin + Misc. stuffs."
True, but there is so much in the Marketing/Admin and Misc stuff at Intel. They make CPUs that they sell to OEMs. How can they possibly need the marketing staff they have. They do so many trade shows as well that are a waste.
The could layoff 25% of their staff and still have plenty of people to do the right things.
- This is a little bit silly. Intel and Andy Grove INVENTED OKRs. I think the problem in recent years, Intel started using them incorrectly... basically to determine comp (leading to rampant sandbagging), when in fact they are primarily to set quantifiable milestones for success for the organization at-large.
They should keep OKRs but do them the way Grove did it, and not however the fuck they are currently doing them.
- From the outside, this reads well. My takeaway is that the current goal is to become more engineer focussed by driving away middle management, and removing the OKRs that some managers may be hiding behind (or using to entirely justify their jobs).
I wonder what the pushback from the board and management will be, but I don't get the impression Tan will pull any punches when discussing removing middle-management, nor will he take a defense of "But I need the three levels of management below me" kindly
- Is there any scenario where Nvidia would acquire Intel? It seems like there's a US national interest in having domestic chip capabilities. That might override any antitrust risks.
- RTO policies will not change Intel from an MBA-driven company to an engineer-driven company. They will instead drive engineers away.
- Of course RTO is mentioned. In person is better, yadda yadda yadda. How much are you attending meetings that being in person is really better?
It's good for social cohesion, don't get me wrong, that's important! but you don't need 4 days a week for that, hoping people will talk to eachother when getting coffee.
- I was heartened that he said he wanted to be a more engineer-driven company. We will see.
