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Pay cuts are better than layoffs. That said, investors need to take a paycut in dividends as well.

faeriechangling 4y ago
Not in this case because the layoffs might result in a sustainable business but a paycut never will because the low comp workers left simply can’t run a globally competitive business. Intel itself wouldn’t even exist today if it didn’t layoff the great majority of its entire workforce some decades back. Layoffs are inevitable at Intel it’s more a question of timing.
p1esk 4y ago
Layoffs is how to get rid of your worst workers, pay cut is how to get rid of you best.
- defrost 4y ago
  As pithy two edged maxims go, that is dull and chipped on both sides. Recent layoffs have indiscriminately targeted talent and pay cuts deter those that are primarily driven by returns.
  - p1esk 4y ago
    Agreed. In my defense, I was responding to a pretty dull comment.
    - defrost 4y ago
      No worries, we've all been there :)
  - sugarpile 4y ago
    Not true from the anecdotes, and admittedly just anecdotes, that I've seen. Top performers get some token, Approved by Legal™, <2% cut to avoid it being classified as a low performer firing, with a larger but still proportional percent coming from middle performers, and the the vast majority of the layoff percent consisting of low performers.
    - deathanatos 4y ago
      Well, then I'll give you more anecdotes: I've been through, in one way or another, three layoffs in the last 7 years, and none of them were performance based.
- taeric 4y ago
  Layoffs get rid of both ends, as well. Don't fool yourself here.
  - davidw 4y ago
    Yep. First place I worked, they did some layoffs. After that, some of the best people started trickling out.
    - midoridensha 4y ago
      Layoffs show the company isn't in a good place, so the best people start looking for better opportunities early, to avoid still being around when it gets even worse.
andromeduck 4y ago
Intel already had layoffs - it's almost periodic at this point.
amf12 4y ago
> Pay cuts are better than layoffs. Unfortunately, I highly doubt that. With pay cut, comes a huge drop in morale across all the employees. Highly performers even consider leaving, and some employees leave. After a layoff, the rest of the employees are more productive and the company gets to decide which employees to lay off (depending on business needs, comp-to-productivity, or whatever else). > That said, investors need to take a paycut in dividends as well. Totally agreed. As an investor and an employee, I feel sad to see my peers be laid off just so that a company can pay the same dividends and maintain earnings.
- dragonwriter 4y ago
  > With pay cut, comes a huge drop in morale across all the employees. Layoffs also create huge general morale drops, greater the more the company has succeeded in the near universal practice of trying to get people to treat the company as a surrogate family.
  - rr808 4y ago
    True but with layoffs the company can choose the people to remove, with broad pay cuts they likely lose their best staff.
deanCommie 4y ago
Not for your best people that weren't in danger of being laid off...

Not in this case because the layoffs might result in a sustainable business but a paycut never will because the low comp workers left simply can’t run a globally competitive business. Intel itself wouldn’t even exist today if it didn’t layoff the great majority of its entire workforce some decades back. Layoffs are inevitable at Intel it’s more a question of timing.

p1esk 4y ago

Layoffs is how to get rid of your worst workers, pay cut is how to get rid of you best.

defrost 4y ago
As pithy two edged maxims go, that is dull and chipped on both sides. Recent layoffs have indiscriminately targeted talent and pay cuts deter those that are primarily driven by returns.
- p1esk 4y ago
  Agreed. In my defense, I was responding to a pretty dull comment.
  - defrost 4y ago
    No worries, we've all been there :)
- sugarpile 4y ago
  Not true from the anecdotes, and admittedly just anecdotes, that I've seen. Top performers get some token, Approved by Legal™, <2% cut to avoid it being classified as a low performer firing, with a larger but still proportional percent coming from middle performers, and the the vast majority of the layoff percent consisting of low performers.
  - deathanatos 4y ago
    Well, then I'll give you more anecdotes: I've been through, in one way or another, three layoffs in the last 7 years, and none of them were performance based.
taeric 4y ago
Layoffs get rid of both ends, as well. Don't fool yourself here.
- davidw 4y ago
  Yep. First place I worked, they did some layoffs. After that, some of the best people started trickling out.
  - midoridensha 4y ago
    Layoffs show the company isn't in a good place, so the best people start looking for better opportunities early, to avoid still being around when it gets even worse.

andromeduck 4y ago

Intel already had layoffs - it's almost periodic at this point.

amf12 4y ago

> Pay cuts are better than layoffs. Unfortunately, I highly doubt that. With pay cut, comes a huge drop in morale across all the employees. Highly performers even consider leaving, and some employees leave. After a layoff, the rest of the employees are more productive and the company gets to decide which employees to lay off (depending on business needs, comp-to-productivity, or whatever else). > That said, investors need to take a paycut in dividends as well. Totally agreed. As an investor and an employee, I feel sad to see my peers be laid off just so that a company can pay the same dividends and maintain earnings.

dragonwriter 4y ago
> With pay cut, comes a huge drop in morale across all the employees. Layoffs also create huge general morale drops, greater the more the company has succeeded in the near universal practice of trying to get people to treat the company as a surrogate family.
- rr808 4y ago
  True but with layoffs the company can choose the people to remove, with broad pay cuts they likely lose their best staff.

deanCommie 4y ago

Not for your best people that weren't in danger of being laid off...