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by jehb 1140 days ago
I would counter that this suggests the management team believes layoffs will be beneficial to management.

What is beneficial to management may or may not actually be in the best interest of shareholders (and neither incentive necessarily aligns with the interests of either customers or employees).
1 comments
anthonyskipper 1140 days ago
The dividend keeps the stock price high, which is good for both shareholders and employees. Cutting employment is how you manage to pay the dividend when you losing money. Not paying the dividend would crash the stock price and make lots of things harder.

If you believe Intel will be profitable again in the near future then paying the dividend really does make sense. Unfortunately there have been lots of companies that thought that was true when it wasn't and the dividend is how they ran out of runway quick.

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ClumsyPilot 1140 days ago
> If you believe Intel will be profitable again in the near future then paying the dividend really does make sense

If you believe your company will be profitable you should reinvest all avaliable capital into the business to grow it.

What you are advocating is contrary to every shred of logic and common sence.

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dragonwriter 1140 days ago
> If you believe your company will be profitable you should reinvest all avaliable capital into the business to grow it.

No, because being profitable doesn’t mean marginal profits from expansion are available. Your plan would have all profitable firms expanding until they collapse from overextension.

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ClumsyPilot 1140 days ago
Sure, this is true for tabacco companies and oil companies that are milking cashcows in a stagnant market.

This should not be true for microchip manufacturer during global computerisation. We now have microchips in sofas and handbags.

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dragonwriter 1140 days ago
So you are saying Intel should plow its profits into expanding into crowded, low-margin markets?
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ClumsyPilot 1140 days ago
Is Apple M1/M2 low margin? Can intel profuce anything as good as M2?

No? Then they are under investing in R&D. It's been a while since M1 came out and intel CPUs still havent caught up.

They GPUs are lacking too. Apply has AI inference functionality in their chips and great ML software support.

You don't get to tell me that they have nowhwre to invest when they are losing on multiple fronts.

I am not even mentioning the fact that they should be finding foundamentally new opportunities ahead of their competitors.

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