Why does the whole industry suddenly think that laying off experienced employees will fix the issues created by self-serving upper management? Has this approach ever truly worked for anyone? The constant lack of substantial improvements after layoffs should be a clear indicator how flawed this strategy is.
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Intel's problem is the layoffs primarily target ICs, while keeping incompetent managers at the company, particularly mid level plus managers..
How dramatic. No the entire industry doesn't think layoffs at Intel solve will fix the co. in fact the company has to change course or it won't survive. Layoffs are the price to be paid due to over staffing and failure of the current strategy. That's all.
Capitalism
Because there is no more money and the business model is broken.
Layoffs absolutely solve the problem. The thing you're missing is "the problem" is not the same problem it's been historically.
The problem is not efficiency or innovation or market share or winning against competition.
The problem is enriching institutional investors more. The problem is enriching the executives who make the decisions to help those investors. And layoffs and cost cutting are exactly what solves that problem. Whether short term stock bump or setting the company up for a split or sale, that's the problem that is being solved here, and this is what layoffs accomplish.
Intel will get worse and worse, losing culture and accumulated experience. Intel is the a round of this cycle in past 4 years:
- Re-org, let the group train a few new managers.
- Hire more people
- It got worse. The team is a few quarters behind schedule, 4x more people created 4x meetings, only 2 hours left per day to work.
- Hire more
- No one knows why it is further behind schedule. No one knows how to do it.
- Go to step #1. Problem will go away as no one knows what problems remain. Yes, we solved the problem.
- Tell Ann we solved all problems.
- Why Intel stock suddenly dropped to 19? We have AI everywhere, tell CEO we have AI everywhere to solve problems.
Your competitor in Pat’s beloved “arena” poem isn’t in TSMC or AMD.
They’re just a cube over.
Eventually layoffs do have the effect upper management desires (especially at Intel), the creation of intense internal rivalry
But your point about not solving problems stands