Welcome Message

Unus pro omnibus, omnes pro uno -- One for all, all for one

Welcome To Our Workers Rights Mutual Support Community Web Site
(Formerly Known As "The Intel Eliminati" - TIE)

Friday, July 14, 2017

News to Chew On
Is It Time To Replace the Intel Corp. CEO?

Apparently, the PR stunts by Intel Corp. executive management, orchestrated and led by Brian Krzanich, did not impress investors in a positive way. Beginning in May 2017, stock market capitalization of TSMC of Taiwan, surpassed that of Intel Corp, as the attached chart demonstrates.

(click on chart to enlarge)
It is now clear more than ever that executive management was not able to deliver the promised goods, including mass shipment of 10nm silicon products and that there is no end in sight to the execution problems that the company faces.

I have no doubt that the root of the company ailments have to do with executive incompetence, as well as the side effects of laying off a very large number of experienced employees during the 2015-2016 period. During this time executive managers continued to rip fat salaries and bonuses, however, the workforce became diluted of industry veterans who could have saved the day, with their wide knowledge and experience. The short-term gain that the company received through the massive layoffs paid back inversely, gutting the organization from the human capital that once kept the execution chains ticking 24/7/365. By replacing knowledgeable and experienced employees with much cheaper newbies, Intel Corp. executive management, sealed off all safety exits and set fire to the engine room. Highly speculative and very expensive external business acquisitions will not make up for the current Intel Corp. executive team's lack of ability to run a profitable business for the long run and therefore, successfully perform their duties to INTC stock holders.

Is Intel Corp. board acting as a rubber stamp, led by the nose by BK's daily whims? Perhaps they should wake up and find a CEO who is more into creating a functioning organization, rather than setting the stage for endless and mindless dog and pony shows that hardly phase the investors low opinion of the company's future.

Interestingly, Ashraf Eassa, who frequently writes commentary covering Intel Corp. is seeing the case for replacing BK, along lines similar to mine.
(see:   3 Signs Intel Corporation Needs New Management)

--Dr. Flywheel

7/30/2017 updates:

No comments :