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For the third year in a row, Intel continues layoffs to keep the company lean

Intel has pretty much been running the tables for the past year on the desktop, notebooks and server fronts. During the past year, the company has stretched its legs with its 65nm Core 2 micro architecture, introduced DDR3 memory platforms for the desktop and is on the verge of releasing new 45nm processors.

At this year Intel Developer Forum, the company showed off its technologies for the future including 32nm test wafers, 45nm Nehalem processors and its 45nm Menlow platform for Ultra Mobile PCs (UMPCs) and Mobile Internet Devices (MIDs). Despite this wealth of good news on the performance and power efficiency front, Intel is still looking for more ways to stay competitive.

In an effort to further streamline its operations, the company has announced that it will cut its worldwide IT staff by up to 10 percent. "We're in a very competitive environment and need to stay agile and stay efficient," remarked Intel spokesperson Chuck Mulloy.

Mulloy made the comment after being questioned about the Intel Perspective Blog. The author of the blog, Intel IT Guy, went through all the nasty details of Intel's latest force reduction.

"We're in a very competitive environment and need to stay agile and stay efficient," said Intel IT Guy.

According to Intel IT Guy, the company is the process of assessing the skills of its employees and scoring their performance. Employees that don't make the cut will be "redeployed" within the company. Redeployment means that employees will have two months to find another position within the company according to Mulloy. For those that choose not to stick around for two months or don't find a new position within two months, a severance package based on years of service with Intel will be offered.

"This is primarily 'skills based' redeployment, which means we are going through a skills assessment process for each employee, scoring them, comparing scores, and then determining which skills we can most afford to lose from our individual groups. It's unpleasant, painful work, and just not going well - at least not for my team," said Intel IT Guy. "The skills assessment process is [in my opinion] meant to ensure that we're legally defensible and identifying people objectively."

Over the last three years, the company has trimmed its numbers by more than 11,000. Ten thousand workers were fired in September of 2006; an additional 1,000 were let go just months before that.

"We're past the point of trimming the fat - we're now into the muscle of the organization," continued Intel IT Guy.


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Thats industry...
By mdogs444 on 9/24/2007 3:22:18 PM , Rating: 5
It really is a sick industry now a days. A company posts record financial numbers, then lets go 10% of the people who helped them achieve that goal.

Shareholders want the stock to rise while continuously lowering operating expenses.




RE: Thats industry...
By OneOfTheseDays on 9/24/2007 3:24:14 PM , Rating: 2
10% OF THE IT STAFF......not that big a deal guys. It's not like they are firing engineers or programmers.


RE: Thats industry...
By mdogs444 on 9/24/2007 3:30:38 PM , Rating: 2
I would assume they have quite a large IT staff as well. My hospital that i work for in Ohio has over 200 IT staff.


RE: Thats industry...
By headbox on 9/24/2007 4:01:14 PM , Rating: 2
200 for a single hospital?! I'm guessing they could fire 10% without any problems.


RE: Thats industry...
By mdogs444 on 9/24/2007 5:03:12 PM , Rating: 2
No, we are still short handed. We have over 6000+ employees. With over 12,000 computers on hand. Not to mention 27 remote clinics off site that we also support.


RE: Thats industry...
By vbNetGuy on 9/24/2007 6:36:38 PM , Rating: 2
I know exactly how you feel, I work for a vendor that supports a lot of different hospitals and 90% of them don't have the staff to support all the different products and services that have deployed.


RE: Thats industry...
By Vertigo101 on 9/24/2007 7:07:11 PM , Rating: 2
I also know how you feel. Especially in a medical environment, keeping the infrastructure running smoothly can mean life or death.


RE: Thats industry...
By mdogs444 on 9/24/2007 3:32:53 PM , Rating: 2
Just to add a bit more info, thanks to Fudzilla.com

quote:
An anonymous blog posting by an Intel employee blogger known as “Intel Guy” described in great detail the process that Intel is using to prepare to eliminate IT employees.

The posting forced Intel to agree that it will be laying off some IT employees worldwide in a cost cutting endeavor. Rumors are circulating that the job cut could be as high at 10% of Intel’s IT workforce.

The blog was posted last week and claims that the layoffs are based on a skills assessment process for each employee according to which employees the company can best afford to lose. The blogger also reported that the painstaking skills assessment is meant to provide more objective results that will give Intel a strong legal defense against the workers selected for elimination.

The blogger claimed that within his group most of the technical female employees would be let go, thus eliminating some of the workforce diversity that Intel has boasted that it has.

Intel’s CEO announced in May that its workforce headcount would continue to drop over 2008. Intel already announced that it will lay off about 1,000 employees in one of its New Mexico memory chip plants, and newspapers in Ireland are reporting that Intel plans to eliminate at least 200 workers at one of its flash memory plants in Ireland.

Intel had 92,000 workers at the end of June, which is 12,200 fewer employees than were employed at the same time one year earlier.


RE: Thats industry...
By sviola on 9/24/2007 3:35:48 PM , Rating: 2
I thought programmers were part of the IT Staff. What exactly do you understand by IT Staff?


RE: Thats industry...
By Oregonian2 on 9/24/2007 3:53:05 PM , Rating: 2
"Programmers" rather than "Software Engineers". IT staff are the folk who architect/build/maintain the computers and associated network internally that's used as a tool by the rest of the company. Their "customers" are 100% internal to the company. IT includes "programmers" when used in that sense.


RE: Thats industry...
By mdogs444 on 9/24/2007 3:57:51 PM , Rating: 2
IT includes programmers, network engineers, analysts, support personnel - including managers & directors in those sectors. "IT Staff" is a very huge range of people.


RE: Thats industry...
By Christopher1 on 9/25/2007 4:45:03 AM , Rating: 2
Yeah. It could be anyone from the guy with a A+ degree who they call to fix the computers around Intel, to the person who is writing the microcode for processors, to the person who is writing their chipset drivers.

Really, IT doesn't need to be trimmed at most of these companies that are trimming it. It needs to be expanded, if anything!


RE: Thats industry...
By Continuation on 9/25/2007 1:44:19 PM , Rating: 2
quote:
to the person who is writing the microcode for processors, to the person who is writing their chipset drivers.


I'm pretty sure the person writing microcode or drivers isn't part of their IT department. He'd be part of Intel's R&D or Engineering department. IT in general refers to the organization that supports the internal computer/network infrastructure of a company.


RE: Thats industry...
By omnicronx on 9/25/2007 1:13:32 PM , Rating: 2
Actually it depends who you work for. You are right though, the industry standard of IT usually includes programmers, but not where i work, nor was it like that at my previous employment. Some places limit 'IT staff' to infrastructure and support staff, others will call anything under the sun that has to do with computers 'IT Staff'.


RE: Thats industry...
By splint on 9/24/2007 9:17:28 PM , Rating: 2
Just FYI, if you jump through the hoops at http://www.intel.com/jobs/jobsearch/ you’ll find that there are currently 1300+ job listings. They are not exactly minimizing the number of paychecks that need to be written; they are just maximizing their talent pool and cutting dead weight. It’s sad to see that to be on top in the tech industry these measures are deemed necessary.


RE: Thats industry...
By Ringold on 9/24/2007 3:31:19 PM , Rating: 2
Isn't.. that the point of starting, owning and operating a business? Is the guy with a hot dog stand on the beach selling hot dogs to help society -- or to help feed his family and earn a living? (Hint: we aren't charitable creatures -- except, as studies suggest, when it benefits our sex lives)

At any rate, my impression from hearing about it on CNBC this morning was that most of them wouldn't actually get sent out the door but rather placed in more economically profitable positions.


RE: Thats industry...
By Zandros on 9/24/2007 4:43:40 PM , Rating: 2
Well, if they're not needed, isn't it better if they go and make themself useful?

Harsh, hardly nice when you think on a smaller scale, but in the grand scheme of things it's probably for the better. Cheaper CPUs as well as more products from elsewhere.


RE: Thats industry...
By Regs on 9/24/2007 5:28:14 PM , Rating: 2
And if I was one of those in the 10% I would say the same exact thing with obscenities in-between.

I wonder if they had a in-house IT group or they out sourced to a contracting company?

My major Fortune 500 company plans to do the same next year because their stock dropped after the R&D report for the next 5-10 years. I work in one facility out of dozens located around the world and I see the money this one facility spends day in and day out. I'm talking millions of dollars each day on new equipment and supplies. Likely more than half of it is un-needed, but politics stipulate that a loose spending cap helps produce more productivity.

If they have the money for one researcher to spend 500k to 1.5 million on a new piece of equipment that will likely depreciate 20% a year and will only get used once every 4 months (witch a "demo" piece of equipment could of done for free or outsourced facility could of done for far less) then they have the money to add head count, or at least give employees better raises and not just the corporation thugs pulling the strings.

That's all this is, politics.


RE: Thats industry...
By feelingshorter on 9/25/2007 1:40:14 AM , Rating: 2
Well, just to give Microsoft some credit (who Intel is owned by), its ranked as one of the best places to work according to businessweek. They pay 70k starting and it has a relaxed work environment. The demand for these guys is still there at other companies. If you graduated from a respectable 4 year college (i would say respectable means tier 3 and above), then companies would already offer you a job before you graduate. I've seen this first hand at my college at least and the demand for engineers (electrical and what not) is high still.


RE: Thats industry...
By just4U on 9/25/2007 12:33:53 PM , Rating: 2
I don't quite understand part of your statement... Microsoft does not own Intel. Not even in a round about way... Was that supposed to be taken literally?

Just curious.


RE: Thats industry...
By omnicronx on 9/25/2007 2:32:26 PM , Rating: 2
quote:
Was that supposed to be taken literally?
Literally pulled out of his ass maybe.. He obviously doesn't know what hes talking about as Microsoft is not even in bed with Intel.. They have enough anti-trust stuff to worry about..


Picture
By Martimus on 9/24/2007 3:17:16 PM , Rating: 2
That is a very interesting picture. It is probably my favorite one so far on Dailytech.




RE: Picture
By nitrous9200 on 9/24/2007 3:22:07 PM , Rating: 2
Right...I'm sure there have been a few stranger ones, I can't remember which.

On topic, well, if they don't need the extra 10% of IT staff, why not get rid of them? AMD should probably be doing this while their bank account gets smaller and smaller.


RE: Picture
By James Holden on 9/24/07, Rating: -1
RE: Picture
By Oregonian2 on 9/24/2007 3:54:36 PM , Rating: 5
Why fire them? The monetary return for the tri-cores as compared to the investment required will probably be obscenely profitable.


RE: Picture
By James Holden on 9/24/07, Rating: -1
RE: Picture
By Oregonian2 on 9/24/2007 6:24:33 PM , Rating: 2
True, it's possible that AMD's product order system is inept and hard to set up. However, even in the large company I had once worked in, the systems were in place and used for many many years such that it'd be pretty straightforward to put a new product in the system. Pure crank turning.

quote:
I mean just think about it, trying to get the guy at Best Buy to explain to someone that X3 is better than X2, but not better than X4.


That seems pretty simple to me. And in any case, since when does a sales person in the stores do anything but make stuff up anyway?

P.S. - And it's not like it needs any marketting. Just put in on the price sheets and give it a suitable line item price. If it were me, I'd just sell them through channels to home and small builders, I doubt it'd be sold to Dell, HP, or the like. And as I mentioned before, selling "fall-out" parts with reduced specs is VERY old hat and has been done in the past as far back as I can remember (been an EE since 1973).


Thats just sad
By Nik00117 on 9/24/2007 4:23:21 PM , Rating: 4
I'm sorry but when you post record financial numbers and are in no need of hurtnig for cash you should not be slashing your work force up in order to imrpove profits. Thats just down right patheic. I mean sure if AMD would cut off their dead wait i'd go well they doing what needs to be done. But Intel is doing brilliantly and don't need to be cutting their employees loose.




Pssh, 10 is nothing....
By kileil on 9/24/2007 4:40:08 PM , Rating: 4
....compared to the percent of emo kids that are cut everyday.




Funny
By Murst on 9/24/2007 5:44:36 PM , Rating: 2
Its rather funny to read all the comments here about how evil intel is to be cutting jobs when it has record profits. However, I think people do not realize that a large number of companies out there (especially the large, successful companies) have unwritten policies that they may cut up to 10% of staff on a yearly basis. It is their way of trimming the fat.

As I'm sure many of you who are no longer in school know, most companies, and especially large ones, have a ton of employees that just should not be working there. Their skills are just not up to what is expected of them. Policies such as this ensure that the company has a very skilled, motivated force. Its not like Intel isn't hiring either. There's always room for skilled employees.

Also, keep in mind that this isn't just a simple layoff. If it was, it would most likely be on the basis of seniority. But this is clearly on the basis of skill and talent. It may be a 10% employee cut, but most likely there's no talent lost.




By Marlin1975 on 9/24/2007 8:51:41 PM , Rating: 2
while they spend millions lobbying to get congress to let them hire more foreign workers for cheaper wages. That and when they are done with them they just stop their sponership and away they go
IBM does the same.

I guess they could spend that money to retrain the people they have. But I guess its cheaper to pay off a congressman to allow more foreign workers to come in. Since its so hard to find IT workers here in the US. (roll eyes)




Sticking it to AMD
By TheLiberal on 9/24/07, Rating: 0
RE: Sticking it to AMD
By sviola on 9/24/2007 3:40:13 PM , Rating: 1
What does this have to do with the news?


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