Print 33 comment(s) - last by omnicronx.. on Sep 25 at 2:32 PM

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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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

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
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 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.

"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov
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