Intel Q1 Results Revealed – 12,000 Job Cuts Planned

Three days ago, word came out from Intel about a series of massive layoffs in the works. Today, Intel has officially revealed just how deep the cuts are going to be and they are deep. Around 11% of their global workforce of nearly 107,000 workers will be let go in either voluntary or involuntary layoffs. This means as many as 12,000 employees of Intel may soon be entering the job market.

The cuts are set to be part of the transition from being a “PC company to one that powers the cloud and billions of smart, connected computing devices”. This change comes as the PC business continues of soften and 40% of company revenue have come from the data center and Internet of Things segments. Compared to Q1 2015, Q1 2016 was slightly worse, with a 1.2% drop in gross margins though revenue was up 7%.

Platform sales volume (processors and chipsets) fell 15% but revenue was up 19% due to the higher selling prices. We can all see that with how much Skylake cost compared to Haswell. overall, the costs of restructuring will come to $1.2 billion, but Intel expects to save $750 million in 2017 and $1.4 billion every year after that. It will be interesting to see where most of the cuts land and if they will impact the fabs and R&D budgets.

Toshiba Doubles Layoffs to Over 14000 Positions

The past few years haven’t been good for Japanese conglomerates and the it appears things are getting even worse at Toshiba. After a massive accounting scandal popped up last year, the Japanese firm ended up losing a massive $4.5 billion USD for the 2015 fiscal year. That led to planned cuts of 7,800 positions worldwide as an effort to cut costs. Things appear to have gotten worse though as Toshiba is now reported to cut over 14,000 positions in this round of layoffs.

At 14,000, this is double the initial estimates for cuts. 7,610 positions or around half are to come from the consumer electronics and PC business segments. Another 4,590 jobs were trimmed from the semiconductor business as well. Finally, 3,449 workers were offered early retirement packages. In total, this is about 7% of Toshiba global workforce of 198,741 people worldwide.

With the PC division set to be sold off eventually, the cuts there probably won’t mean much. The much bigger concern comes from the semiconductor business. Toshiba and partner SanDisk are one of the few NAND manufacturers, along with IMFT, SK Hynix and Samsung. Both companies have faced serve financial trouble and SanDisk recently sold itself to Western Digital. If WD is unable to revive SanDisk and Toshiba continues its downwards trend, we may lose a NAND producer, something no consumer wants.

Apple to Lay off Beats Employees after Recent Acquisition

Well it looks like Apple are going to be laying off staff at Beats as soon as the deal goes through. Apple recently purchased Beats for $3 billion, which is Apples biggest ever purchase. The company is looking to lay off 200 staff from areas that overlap both Apple and Beats technology, A person familiar with the restructuring plans says that Beats workers in human resources, finance, and other roles will be let go. The source claiming to know Apple’s plans didn’t want to be identified since the plans aren’t public at this time.
So if you work for Beats and work in one of those departments, i’d get job hunting!

I’m sure one will be released soon.  Apples purchase of Beats does make a lot of sense as Beats are high quality products, so are Apples so the pair are perfect for the market, maybe they’ll ship some new in-ear headphones by Beats with the iPhone 6 now that it’s owned by Apple, who knows! I personally hate both Apple and Beats because I hate their corporate strategies, I’ll be sticking with my HTC One M8 and Sennheiser HD598s thank you very much.

No official comment has been made by Beats nor Apple regarding the layoffs.

Thanks to Tweaktown for supplying us with this information.

Image courtesy of Tweaktown.