Intel also started hire and fire policy which means the company is loosing its growth
Failed to utilize the employees or failure to judge candidates in interview
Finally Intel is not just cutting jobs it's also cutting the innovative mindset by introducing performance layoffs. Most of the workers worried when they will get ssl4 and just working as donkeys
The one reputed company also do not find innovative way other than layoff which is clear indication of slow down
hyx - I agree with you that salary is not enough to make a big difference to Intel. But remember that Intel is self-insured and bears all medical payouts (they just pay insurance companies to manage the claims). So kicking out old people results in DRASTICALLY lower medical payments. How many heart and cancer patients spending the majority of Intel medical $ are over 60? Probably 90%+? And this is a cost that is incurred year after year for older folks (like me) - but not nearly as much for they younger employees.
Before the layoff last year, SSL4 was an indication of FUTURE contributions or value to your organization. It didn't have anything to do with with your current level of performance; that's what your RATING was for. They also eliminated BE to force managers to use IR for non performers. But last year the rules changed and SSL4 for two consecutive years became equivalent to IR. This year it was a single SSL4= IR. It's the shifting criteria that has demoralized people. Well, that and the threatening emails from HR sent directly to VSP and ERP eligible folks.
The criteria for ISP was SL5 or two SL4 in a row. True that some may have had an off year but HR had to use a formula to get rid of that 11%. Low performing is "relative" to the rest of their team during a specific period of time (1-2 years). In absolute terms that "low" performing employee could still be good...and a big loss to the team.
It is unfair but they were at the bottom relative to all others. At least that is the goal of focal/ ranking.
Most of ERPs are grade 8-9-10 and paid quite well.. A 60 year old who is still grade 6 is likely making more than another grade 6 with 5 years experience
Unfortunately it will Just be hell for the 90% that stay behind. Middle mgt will have to figure out to get the same work done with fewer people... Maybe cutting working groups, meetings, more collaboration... Executives are saying to management figure out a way to be like Qualcomm or mediatek and get these chips out the door with fewer people.
@jpb - this is what Intel does time after time... Buy a company, destroy it, fire employees, declare it a fail, sell for a loss. This is the actual 'virtuous cycle'
Intel is also closing offices without any real foresight into the value they provide -- if they're small, they're gone.
The St. Paul office is being closed and it is going to be disastrous to the IPS and Web Filtering product lines for intel security.
"Intel is getting rid of the lowest performing employees 5-6% (ISP), the oldest employees 2-3% ((ERP) who are in general overpaid for their contribution and will be retiring eventually. The last 3-4% are the ones who were flagged soon to become low performing or working on projects that are no longer viable... From a company perspective the spreadsheet approach makes sense. "
Totally disagree. We have seen no correlation between the people who got SL4s this year (often for the only time in their career) and were ISPed and low performance.
As to the ERP most were equally essential. Since when has Intel been so cheap? So let's say you are paying a Grade 6 or 7 worker 100k salary vs. the 60-70k a younger engineer might get. It takes the new guy a year to get up to speed. That is not worth the chump change Intel is going to save, especially compared to the packages that ERPs are getting, when many of them would have retired in a year or 2 anyway.
This effort is not about efficiency or performance. It's because BK has no innovative ideas and doesn't know what else to do.
Intel is getting rid of the lowest performing employees 5-6% (ISP), the oldest employees 2-3% ((ERP) who are in general overpaid for their contribution and will be retiring eventually. The last 3-4% are the ones who were flagged soon to become low performing or working on projects that are no longer viable... From a company perspective the spreadsheet approach makes sense. It hurts the rest of us feelings but the majority will suck it up and work harder... Win win for Intel.