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In the midst of an ongoing turnaround effort, Intel Corp. reported $12.9 billion in revenue as part of its second-quarter financial results on Thursday, matching year-over-year (YOY). The sum beat Wall Street forecasts, according to consensus estimates cited by CNBC, but it wasnt enough to offset news about higher losses, additional layoffs, and the scaling back of Intel’s foundry business. The chip manufacturer saw its stock price (Nasdaq: INTC) briefly rise as the market closed, but shares have since tumbled about 8% in after-hours and premarket trading, as of this writing. What did Intel report? Lets start with the money: Intel reported a $2.9 billion loss (67 cents per share), compared to $1.6 billion (38 cents per share) YOY. At the same time, CEO Lip-Bu Tan announced that Intel intends to lay off around 15% of its workers, leaving it with about 75,000 employees worldwide by the end of 2025. This news follows layoffs of 15% and 20% of Intels headcount last year and in April, respectively. Intels foundry business is also getting a shakeup after investing too much, too soonwithout adequate demand, Tan stated. He continued, In the process, our factory footprint became needlessly fragmented and underutilized. We must correct our course. Going forward, we will follow a systematic approach to growing our factory footprint thats fully aligned with the needs of our customers. We will be judicious and disciplined as we allocate capitalbecause thats what great foundries do. Pulling back on projects, or abandoning them altogether A large part of this course correction involves slowing or completely eliminating already planned projects. According to Tan, initiatives in Germany and Poland will no longer occur, while Costa Ricas assembly and test operations will be integrated into Intels Vietnam and Malaysia sites. In the United States, Intel is slowing construction of planned factories in Ohio to ensure our spending is aligned with demandwhile maintaining flexibility to accelerate based on new customer wins, Tan added. Intel previously delayed the Ohio factories operations by at least half a decade.
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E-Commerce
Post-pandemic, flexible work models were meant to deliver the best of both worlds: freedom and fluidity without losing the spark of in-person collaboration. As the pendulum swings back toward on-site work, companies still need to compete for top-tier talentnotably in tech. But increasingly, they also need to convince those people to come back to the office. Its not enough to offer a desk and a decent coffee machine. The office has become something more symbolic: a reason to believe. A space that reflects your companys intent and identity. Thats why commercial real estate, once just a line item on the P&L, is quietly becoming a talent brand platform. And if you think thats an exaggeration, look at the competition happening right now at the high end of the office and mixed-use market. Despite a general oversupply of space and an ongoing shift to remote work, premium buildings are still in demand in prime markets such as New York, Miami, and Los Angeles. Thats because theyre delivering more than square footage. Theyre transforming the workplace into a cultural and connective experiencea choice, rather than a mandate. The talent mandate driving the real estate competition Before the pandemic, Class A developers were already beginning to differentiate through design and lifestyle. But post-pandemic, the stakes have risen. At the top of the market, the most successful commercial real estate developers are now acting more like boutique hospitality brands. They’re curating experiences, designing for well-being, and programming spaces in ways that resonate with a workforce that values autonomy, connection, and purpose. Look no further than Hudson Yards promise of connected community, or Brookfield Properties (owner of New Yorks Brookfield Place and Londons 100 Bishopsgate), mission to create new ways to work.” In our work with clients like Tishman Speyer and SL Green, weve seen firsthand how a hospitality mindset long central to hotels and resorts is being used to reposition commercial spaces as magnets for talent. These are no longer passive shells for work; theyre active tools in the battle for culture, collaboration, and competitive advantage. The imperative isnt just to create high-end offices. Its to build environments that help companies recruit the best people and inspire them to come together in person. That means more than adding rooftop gardens or wellness studios (though those help). Its about the story those elements telland how they connect to a deeper promise about work, life, and belonging. From asset to experience Take The Spiral in New York, a Tishman Speyer property designed by Bjarke Ingels Group. Its terraced, corkscrew architecture connects every floor to outdoor green space, a vertical extension of the High Line that literally winds nature up the building. This isnt just a design flourish; its a signal of fresh air, light, openness that tells employees: Youll be well here. Or Morgan North, another Tishman Speyer project we collaborated on, where a multi-acre rooftop park atop a historic post office delivers an unexpected sense of calm and retreat in the heart of Manhattan. These arent gimmicks, but curatorial decisions meant to align with the values of the people companies want to hire: wellness, connection, inspiration. At One Madison, developed by SL Green, that narrative continues with a rooftop French garden, luxury fitness from Chelsea Piers, and culinary offerings from chef Daniel Boulud. Theres even an exclusive tenant-only amenities floor. This isnt just where people work; its a place they want to be. Why space is a dimension of brand Real estate branding has been seen as ephemeral; temporary campaigns to lease up space. But this new era demands something more permanent, more intentional. When done right, the brand of a place becomes part of the product itself. It doesnt fade once the buildings full. It lives on in the daily experience of the people inside. And thats where hospitality becomes essential. Not in a superficial sense, but in how you curate and program a space to say something meaningful. In many ways, its less about branding as communications, and more about creating an environment that signals what kind of company you are, and what kind of people will thrive there. In this context, hospitality is no longer a metaphor, its a method. It means thinking about your office as a host would a guest: What do they need? How do we make them feel welcome, inspired, and cared for? But whats the ROI? Were often asked: Does this really make people more productive? How do we justify this level of investment in the workplace experience? The short answer is: the best spaces dont distract, they create tangible operational leverage. When employees can walk in a park, work from a lounge, eat world-class food, or exercise without leaving the building, theyre more productive, more loyal, more connected, and more likely to return. More importantly, these spaces send a signal to current and prospective employees. They say: We value your experience. We want you to do your best work, and enjoy your life while doing it. Thats a powerful competitive edge, especially when top talent is scarce and expectations are high. What founders should be asking If youre a founder or people leader, the question isnt How much space do we need and what well-being perks can we offer? Its What kind of experience are we creating, and what does that say about who we are? The office, in this light, becomes a key pillar of your employer brand, not a backdrop, but a stage. One that helps you tell your story and helps your people to live it. And when thats done well, its not just employees, present and future, who notice. Investors, clients, and collaborators do, too. In the most effective developments, brand doesnt just show up in a name or a logo. It informs the entire user experience, just as it would in a top-tier hotel or entertainment venue. From the lobby to the lounge, from fitness to food, every detail becomes a chapter in a larger story. So, if your real estate is still telling a story about available space, youre already behind. The next wave of workplaces is telling a different story, about purpose, energy, community, and care. Thats the kind of story the best talent wants to be part of.
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E-Commerce
When it comes to processes that employers, managers, and leaders dread, its likely to be performance management. And unfortunately, according to Gartner research, 71% of CHROs agree that managers are not fulfilling their role when it comes to performance management. And as a result, employees arent getting the type of feedback that they need to perform. These shortcomings ripple beyond individual performance and can affect organizational success. A May 2024 Gartner survey of 1,456 employees found that only 52% believe performance management is helping their organization achieve its business goals. What prevents employees from getting the most out of performance management is likely due to a perception of bias or lack of fairness in the process. Surprisingly, employees are starting to view AI as being less biased than humans when it comes to performance decisions. An October 2024 Gartner survey of nearly 3,500 employees found that 87% of employees think that algorithms could give fairer feedback than their managers right now, and an additional Gartner survey from June 2024 found that 58% of employees believe humans are more biased than AI when it comes to making compensation decisions. Generative AI in performance management Employees are embracing the idea that AI or generative AI (GenAI) can increase, rather than erode, fairness in the workplace. Understandably, a healthy level of skepticism still exists. At Gartner, we found that only 34% of employees agree or strongly agree that if an algorithm provided performance feedback (instead of their manager), the feedback would be fairer. It’s the duty of CHROs to improve the effectiveness and fairness of performance management at their organizations. But if that means integrating GenAI to achieve their goals, they need to take the following steps. Step one: Evaluate the benefits of GenAI against performance management pain points To leverage GenAI to improve performance management, HR leaders need to understand the pain points at their organization. They also need to have an idea of how GenAI capabilities might be useful in addressing them. Data from Gartner employee and manager surveys, as well as interviews with CHROs and heads of talent management, revealed two common complaints about performance management. First, the effort required is too high. Employees and managers complain that the process demands too much of them, is overly complex, and relies on cumbersome technology. Second, many questioned how useful it actually is. Employees and managers shared that performance management was not relevant to how they work, not aligned with business needs, and disengaging and unmotivating. To have a greater understanding of the pain points within their unique organization, CHROs and heads of talent management should ask managers and employees across the organization to provide feedback on their biggest pain points. From there, HR leaders can assess whether GenAI is the right tool to address those issues. For example, if fairness is an issue, leaders can implement GenAI as a tool to evaluate text for bias. If time-spend and disparate technology are an issue, companies can use GenAI to summarize data and generate insights from multiple HR systems. Step two: Gauge readiness for GenAI in performance management Not all workplaces are alike, and some may be more open to the full spectrum of GenAI capabilities than others. Surveys can be a great tool to assess workforce readiness for GenAI in performance management. This way, leaders can ensure that the technology enhances, rather than detracts, from the employee experience. Leaders should combine quantitative survey data with qualitative feedback by equipping managers with tools to get a fuller picture of workforce GenAI readiness. This might mean sharing standardized GenAI statements reflecting the desired performance state with managers. For example, that might mean using GenAI as a way to level bias in performance management, increase efficiency, and employee satisfaction. In addition, question guides can also support managers in gathering candid employee input, such as whether employees are comfortable with GenAI drafting goals or suggesting performance ratings (with human oversight). Managers should collate feedback to assess GenAIs limitations in performance management. Step three: Secure employee trust to boost adoption and satisfaction Trust is a top barrier to AI adoption. This is why building a foundation of trust is important when integrating GenAI in performance management. CHROs and talent management leaders can build employee trust by increasing visibility into decision-making and establishing an open dialogue about GenAI. HR leaders should start by equipping managers and employees with the rationale for how and why the organization is introducing GenAI in performance management. A simple view into the why behind a decision helps employees accept and trust the decision. Employees also need to understand how decisions will directly impact their roles, so they can process, adapt, and move forward in good faith. Lastly, leaders should establish mechanisms for employees to share feedback on GenAI in performance management to build trust and improve processes. These kinds of mechanisms help leaders identify when there is an erosion of trust, so they can rectify it by incorporating more human touch. Effective performance management leads to better organizational performance Improving performance manageent boosts employee engagement and business success. Gartner research shows that when HR aligns performance management with employee and business needs, organizations see higher perceptions of fairness and accuracy. They also see increases in employee performance (40%), engagement (59%), and overall workforce performance (60%). Increasing performance management utility drives better outcomes for everyone. With employees starting to see the potential of GenAI in performance management, now just might be the ideal time to integrate this technology.
Category:
E-Commerce
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