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Intel cuts pay to support the dividend

blueone said:

Intel Cuts Pay For Employees To Keep Their Quarterly Dividend

Hot off the presses, we have confirmation from multiple employees that Intel is cutting costs tremendously at the expense of their employees. These cuts are broad-based, with employees having their…
www.semianalysis.com
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If this is true. Wooooof. Prioritizing the dividend over talent retention is nightmare fuel for those you appreciate good management. If I were an Intel investor I would be shouting from the rooftops to cut the dividend before talent. What a terrible strategic decision. TSMC should look to scoop up and disgruntled employees.
 
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I worked at Intel from 1982 to 1986 when they:
  • Froze all hiring
  • Froze all pay raises
  • Gave everyone a 10% pay cut
  • Finally, asked everyone to work 2 hours/day extra, without pay
In those four years about 25% of the company simply quit, including me, so I joined my first EDA company in 1986. It's deja vu, all over again.
 
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blueone said:
Just talked to an employee tonight. It's correct.
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Good lord who thought this was a good idea!!! Unbelievable. This is what happens when the finance guys on the board run amok. What is morale like from your Intel friend? Must be rough. My heart goes out to the employees getting wage cuts in an inflationary environment. Just brutal
 
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Daniel Payne said:
I worked at Intel from 1982 to 1986 when they:
  • Froze all hiring
  • Froze all pay raises
  • Gave everyone a 10% pay cut
  • Finally, asked everyone to work 2 hours/day extra, without pay
In those four years about 25% of the company simply quit, including me, so I joined my first EDA company in 1986. It's deja vu, all over again.
Click to expand...
This is just unbelievable. Pat is probably putting himself on the back (no pun intended) for the 25% pay cut. Doesn’t mean squat when the base pay is already so high. Everyone else is still going to feel the pain way more than he will ever do. Who’s this new CFO they’ve got. Heard he’s not the nicest guy but good lord, now I’m sure he must be a real Scrooge.
 
I already made my opinion know on how important the dividend is for Intel to keep it's stock value higher and ensure they can get the loans necessary for expansions that IFS requires, so I won''t restate them here. Of course people are welcome to their own opinions on the matter, but personally I have never seen an argument for axing the dividend that was convincing.

Who’s this new CFO they’ve got. Heard he’s not the nicest guy but good lord, now I’m sure he must be a real Scrooge.
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To each their own, but he seems nice to me.
 
nghanayem said:
I already made my opinion know on how important the dividend is for Intel to keep it's stock value higher and ensure they can get the loans necessary for expansions that IFS requires, so I won''t restate them here. Of course people are welcome to their own opinions on the matter, but personally I have never seen an argument for axing the dividend that was convincing.


To each their own, but he seems nice to me.
Click to expand...

In the old days banks and lenders were willing to accept business borrower's company stocks or major shareholders' stocks as the collateral. But today especially in the Intel's case, I don't think that's feasible or relevant.
 
hist78 said:
In the old days banks and lenders were willing to accept business borrower's company stocks or major shareholders' stocks as the collateral. But today especially in the Intel's case, I don't think that's feasible or relevant.
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That's not what I meant. As a companies' stock weakens their credit rating and debt limit goes down as confidence in the company decreases.
 
Welp, I have just lost faith that Pat knows how to turn Intel around.

They invested a lot to bring back retired staff and then this.
 
Xebec said:
Welp, I have just lost faith that Pat knows how to turn Intel around.

They invested a lot to bring back retired staff and then this.
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Gelsinger did bring back some a few of his old allies, at the Senior Fellow and SVP level, but I wouldn't call them a big investment in the context of Intel's total spending.
 
blueone said:
Gelsinger did bring back some a few of his old allies, at the Senior Fellow and SVP level, but I wouldn't call them a big investment in the context of Intel's total spending.
Click to expand...
Fair. Just having experience from big old companies it's quite unusual to do that - a bit of political capital required.
 
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