Latest news with #SantaClara
Yahoo
2 days ago
- Business
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Intel commences mass layoffs with over 100 Californian employees, including around 45 engineers in efforts to shed $500 million in operating costs this year
When you buy through links on our articles, Future and its syndication partners may earn a commission. For most of this year we've been hearing murmurs of Intel's plans to drastically reduce its workforce. As of today we're starting to see what the true scope of Intel's downsizing will be, with around 107 employees set to lose their jobs in California. These planned firings have been an ongoing story for Intel, having already cut 5% of its workforce back in 2024. According to CRN, last Wednesday Intel provided the notice required by Californian law alerting employees to their imminent doom. The employees affected are all connected to the Santa Clara headquarters, and are all a part of Intel's plans to reduce operating expenses by $500 million over this year, with the goal to drop another $1 billion in 2026. "As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company. Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution," said an Intel spokesperson. They also reiterated the 20% figure we've heard before about how many employees Intel is planning to layoff. This is after Intel had claimed that those numbers were an exaggeration. Thanks to California's Worker Adjustment and Retraining Notification Act, a large layoff like this in a short amount of time requires proper warning and transparency. The notice states layoffs will commence on July 15, and those let go will have either 60 days notice in advance, or receive a four-week notice with nine-weeks of pay and benefits for the trouble. Hopefully this is enough to give these employees a fair chance at landing on their feet. What's a little surprising is the roles that have been noted in this mass layoff. Previous Intel has implied it would be cutting out middle-men to focus on engineering talent, but among the roles are still plenty of engineering jobs. CRN provide a list of these jobs, which include: "22 physical design engineers, three physical design engineering managers, three system-on-chip logic design engineers, three product development engineers, four design-for-test design engineers, six cloud software architects, four cloud software engineering managers and two cloud software development engineers." That's just a tad under 50% of the total number, just in engineering roles. Though there were also a fair few manager roles among the casualties, including an AI systems and solutions engineering manager, engineering project manager, silicon design engineering manager, and a bunch of others. With Intel's recent choice to outsource marketing to a consultancy firm using AI, it's likely there's another channel of jobs set to go on the cutting block there too. This is all in line with the company's new CEO, Lip-Bu Tan's plan, to meet those goals of cutting operation expenses as much as possible. Sadly, I think we're going to have to wait and watch to see how close Intel gets to that 20% quota. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
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Intel commences mass layoffs with over 100 Californian employees, including around 45 engineers in efforts to shed $500 million in operating costs this year
When you buy through links on our articles, Future and its syndication partners may earn a commission. For most of this year we've been hearing murmurs of Intel's plans to drastically reduce its workforce. As of today we're starting to see what the true scope of Intel's downsizing will be, with around 107 employees set to lose their jobs in California. These planned firings have been an ongoing story for Intel, having already cut 5% of its workforce back in 2024. According to CRN, last Wednesday Intel provided the notice required by Californian law alerting employees to their imminent doom. The employees affected are all connected to the Santa Clara headquarters, and are all a part of Intel's plans to reduce operating expenses by $500 million over this year, with the goal to drop another $1 billion in 2026. "As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company. Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution," said an Intel spokesperson. They also reiterated the 20% figure we've heard before about how many employees Intel is planning to layoff. This is after Intel had claimed that those numbers were an exaggeration. Thanks to California's Worker Adjustment and Retraining Notification Act, a large layoff like this in a short amount of time requires proper warning and transparency. The notice states layoffs will commence on July 15, and those let go will have either 60 days notice in advance, or receive a four-week notice with nine-weeks of pay and benefits for the trouble. Hopefully this is enough to give these employees a fair chance at landing on their feet. What's a little surprising is the roles that have been noted in this mass layoff. Previous Intel has implied it would be cutting out middle-men to focus on engineering talent, but among the roles are still plenty of engineering jobs. CRN provide a list of these jobs, which include: "22 physical design engineers, three physical design engineering managers, three system-on-chip logic design engineers, three product development engineers, four design-for-test design engineers, six cloud software architects, four cloud software engineering managers and two cloud software development engineers." That's just a tad under 50% of the total number, just in engineering roles. Though there were also a fair few manager roles among the casualties, including an AI systems and solutions engineering manager, engineering project manager, silicon design engineering manager, and a bunch of others. With Intel's recent choice to outsource marketing to a consultancy firm using AI, it's likely there's another channel of jobs set to go on the cutting block there too. This is all in line with the company's new CEO, Lip-Bu Tan's plan, to meet those goals of cutting operation expenses as much as possible. Sadly, I think we're going to have to wait and watch to see how close Intel gets to that 20% quota. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Nvidia Could Send This AI Networking Stock 6 Feet Underground
The AI networking space is heating up in 2025, and not in a way that favors everyone. Arista Networks Inc (ANET), long a heavyweight in high-performance cloud networking, suddenly finds itself in the crosshairs of a market shift it didn't see coming. Nvidia (NVDA), the leader in AI chips, is now setting its sights on the Ethernet turf. Equipped with upcoming Quantum-X switches boasting 1.6T speeds and a timeline that beats rivals by a full year, Nvidia is not just entering the market, but could be redefining the playing field. 1 Dividend Stock to Buy Yielding Over 7% Ditch Big Tech and Buy These 3 Popular Stocks in 2025 Instead Robinhood Just Hit a New Record High. Is It Too Late to Buy HOOD Stock? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! BNP Paribas took note and hit Arista with a downgrade earlier in June. For Arista, survival now hinges on reinvention, fast execution, and a serious rethink of its AI roadmap. Santa Clara-based Arista Networks (ANET) is a leading player in cloud networking, specializing in high-performance Ethernet switches for large-scale data centers and enterprise environments. The company has built a reputation for delivering software-driven networking solutions powered by its proprietary Extensible Operating System (EOS), which offers scalability, programmability, and reliability. Arista commands a market cap of $119.3 billion, underscoring its significance in the tech and networking industry. ANET stock has dipped by 12.9% in 2025 due to a mix of rising competitive pressure, shifting demand, and macroeconomic uncertainty. Investors are increasingly wary of Nvidia's aggressive entry into AI-optimized Ethernet switches, which threatens Arista's core market share. Yet, over the past 52 weeks, ANET rose 15.2%, surging by over 10.8% over the past three months alone. ANET stock is not cheap, priced at 39.9 times forward adjusted earnings and 16.5 times sales, trading well above the sector medians and even its historical averages. That premium once made sense, thanks to Arista's Ethernet dominance in AI. But with Nvidia bulldozing into the same space, that crown feels shaky. Premiums only last with a wide moat, and right now, Nvidia is already halfway across Arista's shrinking trench. Arista Networks reported a stronger-than-expected first quarter of 2025 on May 6, crossing $2 billion in revenue for the first time, up 27.6% year over year. GAAP profits hit $813.8 million or $0.64 a share, while non-GAAP earnings reached $826.2 million or $0.65 per share, easily topping last year's $0.50. What's fueling the charge is solid demand from cloud giants, AI-driven data centers, and campus enterprises - all attracted by Arista's cutting-edge portfolio of advanced networking solutions. New innovations, like Cluster Load Balancing, enhanced observability tools tailored for AI, and an upgraded EOS platform, helped seal deals and expand customer relationships. Margins held firm, with non-GAAP gross margin coming in at 64.1%, just a hair shy of Q4 levels. Cash from operations climbed to $641.7 million, up from $513.8 million a year ago, while Arista's cash and cash equivalents amounted to $1.8 billion. A $787 million stock buyback, plus a fresh $1.5 billion authorization, added extra shine. Looking ahead, management guided Q2 revenue to $2.1 billion with expected non-GAAP gross margin and operating margin around 63% and 46%, respectively. Management remains bullish on AI, cloud, and enterprise tailwinds, though looming tariff risks could weigh in the back half of the year. Still, Arista reaffirmed its full-year gross margin range of 60% to 62%. Meanwhile, analysts predict EPS to be around $2.30 for fiscal 2025, up 11.7% year-over-year, before surging by another 15.2% annually to $2.65 in fiscal 2026. BNP Paribas' analyst, Karl Ackerman, downgraded ANET stock from 'Outperform' to 'Neutral' due to rising competitive threats, particularly from Nvidia. The analyst noted that the AI networking landscape is rapidly transitioning from InfiniBand to Ethernet, with Nvidia and other emerging players poised to lead this market shift. He also noted that Nvidia's anticipated launch of Quantum-X switches and rack-scale GPU systems, as early as the second half of 2025, could significantly compress Arista's near-term growth prospects. As a result of these pressures, Ackerman revised his projection for Arista's AI-related sales in 2027, lowering it from $3.4 billion to $2.5 billion. Arista stock has a consensus 'Moderate Buy' rating overall, as analysts remain cautiously optimistic. Out of 22 analysts covering the stock, 13 recommend a 'Strong Buy,' two give a 'Moderate Buy,' and seven analysts stay cautious with a 'Hold' rating. The average analyst price target for ANET is $110.95, indicating potential upside of 15%, while the Street-high target price of $130 suggests that the stock could rally as much as 35%. On the date of publication, Sristi Suman Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
2 days ago
- Business
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SiTime Corporation Announces Pricing of Follow-on Public Offering
SANTA CLARA, Calif., June 26, 2025 (GLOBE NEWSWIRE) -- SiTime Corporation (Nasdaq: SITM), the Precision Timing company, today announced the pricing of its follow-on public offering of 1,750,000 shares of its common stock at a price to the public of $200.00 per share. The gross proceeds of the offering to SiTime, before deducting underwriting discounts and commissions and other offering expenses, are expected to be $350 million, excluding any exercise of the underwriters' option. The offering is expected to close on June 27, 2025, subject to customary closing conditions. SiTime has granted the underwriters a 30-day option to purchase up to 262,500 additional shares of its common stock at the public offering price, less underwriting discounts and commissions. UBS Investment Bank and Stifel are joint lead book-running managers for the offering. Needham & Company and Goldman Sachs & Co. LLC are joint book-running managers for the offering. Raymond James and Roth Capital Partners are co-managers for the offering. A registration statement relating to these securities was filed with the U.S. Securities and Exchange Commission on February 26, 2024, and became effective upon filing. SiTime has also filed a preliminary prospectus supplement for the offering. The offering is being made only by means of a prospectus supplement and accompanying prospectus. Copies of the final prospectus supplement and the accompanying prospectus, when available, may be obtained from: UBS Securities LLC, Attention: Prospectus Department, 1285 Avenue of the Americas, New York, NY 10019, by telephone at (888) 827-7275 or by email at ol-prospectus-request@ or Stifel, Nicolaus & Company, Incorporated, Attention: Prospectus Department, One Montgomery Street, Suite 3700, San Francisco, CA 94104, or by telephone at (415) 364-2720 or by email at syndprospectus@ This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. About SiTime SiTime Corporation is the Precision Timing company. Our semiconductor MEMS programmable solutions offer a rich feature set that enables customers to differentiate their products with higher performance, smaller size, lower power, and better reliability. With more than 3.5 billion devices shipped, SiTime is changing the timing industry. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to SiTime's expectations regarding the public offering. SiTime cautions investors not to place undue reliance on the forward-looking statements contained in this release. These statements are subject to significant risks and uncertainties, and actual results could differ materially from those projected. These risks and uncertainties include, without limitation, risks and uncertainties related to market conditions and that the closing of the offering is subject to the satisfaction of customary closing conditions. Risks and uncertainties relating to SiTime and its business can be found in the 'Risk Factors' section of SiTime's Form 10-Q for the quarter ended March 31, 2025, filed with the SEC on May 8, 2025, and in the preliminary prospectus supplement related to the public offering filed with the SEC on June 24, 2025. SiTime undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in SiTime's expectations, except as required by law. Investor Relations Contacts: Shelton GroupLeanne Sievers | Brett Perrysitm-ir@ SiTime CorporationBeth HoweChief Financial in to access your portfolio
Yahoo
2 days ago
- Automotive
- Yahoo
Intel lays off hundreds of engineers in California, including chip design engineers and architects — automotive chip division also gets the axe
When you buy through links on our articles, Future and its syndication partners may earn a commission. Intel has begun cutting jobs in California as part of its cost-cutting and restructuring strategy introduced by CEO Lip-Bu Tan. The move comes two months after Tan warned that staff reductions were unavoidable and that 15% - 20% of the company's staff would be laid off. Officially, Intel is eliminating excessive management layers, but a CRN report indicates that the company is surprisingly laying off chip design engineers and architects. Additionally, the company is shutting down its automotive chip division, according to Oregon Live. Among the job categories being eliminated are 22 physical design engineers, three physical design engineering managers, and several logic and product development engineers. The company is also removing roles such as cloud software architects and engineering managers, in addition to positions tied to business and project management, including a vice president of IT and multiple technology strategy leads. Employees in California are engaged in the development of CPU and GPU products. According to a notification submitted to the state, 107 employees based at Intel's Santa Clara headquarters will be laid off. The filing complies with California's WARN Act, which requires disclosure when 50 or more workers are affected within a 30-day period. The layoffs are scheduled to begin on July 15. Impacted employees have been given either a 60-day notice or a shorter four-week notice, paired with nine weeks of compensation and benefits. Intel is also exiting the automotive chip market. The division, which operated within the Client Computing Group, will be shut down. Intel's automotive business is based in Munich, Germany, leveraging its proximity to major European automakers and suppliers. As of 2024 – 2025, the unit is (or was?) led by Jack Weast, a longtime Intel veteran, Intel fellow, and former VP at Mobileye. To succeed in developing platforms for software-defined vehicles, Intel's automotive unit had autonomy over product strategy and customer engagement. Most employees in that unit are expected to lose their jobs as the company shifts focus to its core offerings in client and data center solutions. The cuts are part of Intel's larger effort to eliminate layers of bureaucracy and improve execution speed. In an internal communication from April, Tan highlighted a shift in performance measurement, criticizing a past practice where leadership success was tied to the size of one's team. He stated that going forward, efficiency and impact with smaller teams will be Intel's way of operation. "I have been surprised to learn that, in recent years, the most important KPI for many managers at Intel has been the size of their teams," Lip-Bu Tan wrote in a letter to employees back in April. "Going forward, this will not be the case. I am a big believer in the philosophy that the best leaders get the most done with the fewest people. We will embrace this mindset across the company, which will include empowering our top talent to make decisions and take greater ownership of key priorities." Tan emphasized that leadership would be responsible for determining how best to align personnel changes with the company's strategic priorities, which include laying off 15% to 20% of its personnel. Earlier this month, it turned out that the company will lay off 15% to 20% of its fab staff as well as outsource a significant portion of marketing operations to Accenture, which is projected to use AI to communicate with Intel customers. Intel is committed to reducing spending by $500 million this year and an additional $1 billion the following year. Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.
