Shortly after the second quarter earnings call, chip giant Intel CEO Brian Krzanich went to Business Update MeeTIng, the company's quarterly general meeting. The purpose is to let all employees know the direction of the company in a timely manner.
The atmosphere of the meeting was destined to be unfriendly for Kozianik, as Intel just announced one of the largest layoffs in the company's history, and it is preparing to cut 12,000 people, or about 11% of the total.
According to several employees attending the meeting, since Intel did not give advance notice to layoffs, this made the meeting a more tense atmosphere.
Intel CEO Brian Krzanich
During an hour-long meeting, Kozianik was asked a number of sharp questions, such as closed factories, reduced projects, and long-term goals for corporate reconstruction.
At the meeting, Koziannik was also asked another sharp question: Why is the salary increase when the entire company is going to save costs through layoffs? Kozianik’s answer is that his starting salary is very low, even though it is still lower than the median of the profession in the same industry. Koziannik’s total salary last year was $14.6 million, an increase of about $3.5 million from the previous year.
An Intel employee who was recently dismissed learned about the meeting through live broadcast. The employee said: "You may say that Kozianik should raise his salary, but can he do the job? I think these two questions should be Discuss separately."
The large-scale adjustments led by Kozianik are in progress. As one of the most standard companies in Silicon Valley, Intel has progressed with technology development. In the face of shrinking PC market and the biggest source of revenue sinking, Intel is turning its focus to servers and networked device chips, while the workers relying on it are from the outside generation.
These changes have led to a further deepening of the gap between Kozianik and some of Intel's old people. Intel is in a different situation for different people. Some people think that it is a company that is in a crisis and has no clear direction. Some people think that it is a company that makes bold decisions in the transition in order to better cope with external changes.
According to a large number of Intel employees and former employees, no matter which image appears above, Intel feels different from the previous one.
An employee who worked at Intel for nearly three decades said: "I have been working at Intel for a long time, but the changes in the past year or two have been a bit surprising, and it feels different when I first came."
Eradicate old employees
The scale of layoffs is only part of the story. Employees believe that Koziannik intends to target older employees over the age of 40 with the aim of injecting fresh blood into the company's aging workforce.
In fact, according to the layoffs provided by Intel, 79% of the employees to be laid off in the US are over 40 years old. The odds of being cut off at the age of 40 are 2.5 times that of employees under the age of 40, and the older you are, the more likely you are to be laid off.
Given that more than 60% of Intel's US employees are over 40 or older, these numbers may not be too surprising. In addition, the data does not reflect the entire restructuring plan because it does not cover non-US employees, it only represents the first affected employees. However, the fate of the old employees has caused a lot of complaints among the employees.
A former Intel employee said: "Intel will sweep a large number of old and experienced veterans out of the house. In the short term, it will help to rectify the finances, but in the long run, I think this is a mistake."
Not everyone is opposed to Kozianik’s approach. An executive who has worked for Intel for 20 years said that this year's layoff plan should have been implemented long ago.
The employee said that the total number of employees of Intel has increased from 100,000 in 2011 to 112,000 in 2016, while the company's annual revenue has remained at around $55 billion, and profitability has been declining. Through the April restructuring, Intel plans to reduce spending by $1.4 billion by mid-2017, striving to achieve the highest level of revenue generation in the company's history.
The employee also said: "The age of the labor force at Intel is relatively large. In order to change the company, you may need to lay off some old employees."
In response to the layoffs, Intel issued a statement in response: "Our restructuring is a comprehensive plan to transform the company from a PC company into a cloud-enabled service and billions of connected smart devices. Personnel decisions It will only look at performance, skill level, and whether the business supports this shift. Other factors such as age, race, international, gender, sexual orientation, immigration status, etc. are not factors that we consider when making decisions."
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