But when it's done in such ruthless manner, how can the company expect the remaining employees to have passion about their jobs? How can they innovate and excel in such brutal working environment?
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"Sure, the layoffs will deter talented people from joining Intel, and will demoralize the remaining people, but Intel's real problem is that it lacks vision. Intel ekes out money by making smaller or faster widgets, not by really innovating. It is slow to respond to change, and it never, ever creates change. This will be its demise. The people don't matter all that much."
Bingo.
And something tells me that either new people or existing ones who might contribute in this area aren't going to speak up.
My group hired several senior, external people not long ago, we thought, to provide some assistance in this area. Between people who quit or were pushed out prior to the layoff or were ISP'd, only one is left. And she basically just parrots whatever the boss says.
Good people came to Intel. The culture either beats beats them into submission or drives them away.
Sure, the layoffs will deter talented people from joining Intel, and will demoralize the remaining people, but Intel's real problem is that it lacks vision. Intel ekes out money by making smaller or faster widgets, not by really innovating. It is slow to respond to change, and it never, ever creates change. This will be its demise. The people don't matter all that much.
So if they throw the officers and the captain of Titanic offboard, more people would have survived?
HR and management watch each others' backs. No way we'd do any trimming at the top level (which I agree, is where the majority of the problems are). When you promote ~30 fellows and ~150 VP's in a tech company, something is majorly wrong.
It's easier to just say that 12,000 people were low performers, and if we get rid of them then everything will be fine.
I get when a company needs to cut head count due to falling revenue or losing money but if this were truly the case with Intel, they would start by cutting the fat on top. How many VP's work @ Intel? Do we really need 300 plus making a six figure salary and millions of shares of stock that do not have a vested period?
Reminds me of a funny story I heard about AMD switching to single ply toilet paper to cut cost. People ended up using more paper. LoL. I guess it's their turn to laugh at us now
However, despite the liposuction, they still seem to be binge eating judging by the RCGs and Interns coming in NEO
.....a company which can get rid of 12K in one swoop means that management has been sleeping for the past 10yrs ...overhiring/meaningless projects and too much flab in the management..... one has to take care of ones health to be healthy ....with regular fat reduction...... Intel is going through liposuction due to overhiring in the past years......
I'm okay with ruthless, but mindless and blind layoffs irregardless of business function, critical skills and whether an organization should be cut 90% or hiring and cut across the board with ISP/ER/VSP is a sign of weakness at the top, weakness just below the top not to resist and do the right thing.