King kills 10% of own soldiers …..because he cannot win anymore !!

ENDERLE: I’m not a big fan of layoffs and large layoffs tend to have a lagging impact of making the company increasingly less competitive as the organization tries to recover from the lost resources of the people that have left. Enderle thinks it would be better for Intel to focus on their lack of competitiveness against rival Advanced Micro Devices.

Marketplace: Intel layoffs

Whenever I see a news about big company laying off (it is always 10% or such of resources), I am reminded that at the end the investor is the king.It is obvious that companies announce such things, for the benefit of investors. Who else would care / like this news. They could have as well done that without shouting out loud.

BUT … Should the investors be happy. Especially for companies like Intel.

Intel made their bucks because they were the leaders in chip making. It is not a good sign, when a leader informs that he didn’t notice when he became lazy (more baggage).To me, it actually means…

Company saying – WE DON”T HAVE ANY NEW/GOOD IDEAS TO BE THE MARKET LEADER .

like a King saying – I am going to kill 10% of my soldiers, because I cannot win anymore.

King killing own soldiersSource:photos.windley.com

Should investors be happy with that ?

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