Well there was a lot of news today on how the company Intel is planning to reduce its workforce by about 15% due to cost cutting efforts despite revenues of around $12.8 billion in the second quarter. However, that is down compared to the previous year by about $1.6 billion. To think that the company used to have a stranglehold on the CPU market until AMD in recent times has really jumped out ahead in regards to making processors that were faster and more power efficient for the dollar.
Now why this has angered a lot of people as well is because in recent times the company actually won $8.5 billion in subsidies from the government to help pay for expansions when it comes to semiconductor factories in the US. So you can imagine people are wondering how a company that is granted that much money would all of a sudden start to cut its staff huh?
But this does sound like an example of a company that simply got too comfortable being at the top where a lot of people criticized that they were paying more for products that didn’t seem to improve much over the previous generations. Would you think the first person that should get cut is the CEO’s pay instead as an example? The only story in recent times that coms to mind before was the person in-charge of Nintendo recognized that they did a bad job during the Wii-U era and as a result he actually punished himself financially and made everyone aware of that. It seems more appropriate, doesn’t it?
And if they can’t maintain growth with their current management, it makes you wonder if they will squander the subsidies as well.