Intel layoffs detailed – 165 in Santa Clara

Intel has begun putting numbers to the layoffs it confirmed last week, and in Santa Clara 165 jobs are going to be trimmed.

The giant semiconductor company, which has plants across the U.S. and globally, filed notices with the State Employment Development Department under the WARN Act, which requires advanced notice be given in mass layoffs.

The company is also laying off 152 employees at its Folsom plant.

Intel declined to comment, but the layoffs are clearly part of a trimming confirmed June 16 by Intel CEO Brian Krzanich.

“Yes, we are implementing headcount reductions,” he wrote in a memo to employees.

Krzanich wrote that the layoffs will touch “no more than a few hundred employees in any given site or geography” and are partly the result of eliminating jobs in “areas of the company that have become less important,” as well as trimming “redundant activities and inefficiencies” and managing what he called “lower job performance.”

Intel employs a combined 16,000 at both sites and about 107,000 worldwide.

Photo: Intel headquarters (Len Lahman, Mercury News)

 

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  • dslpltdor

    Intel employs a combined 16,000 Americans at both sites and about 107,000 Foreigners worldwide..

  • ImJustABill

    Since they are overstaffed I assume they won’t file any H1-B applications this year? They’re not doing this to replace American labor with cheap foreign labor, right?

    • Aaron Sims

      They probably will apply for plenty of H1-Bs. They just have to say that the people they eliminated don’t have the right skill set to do the jobs they are filling with imports.

      • Mark

        If you look at the H-1B stats available online, it is apparent that most domestic Intel technical hires were H-1B’s over the past few years. In other words, they’ve given up on even considering the US citizen applicant pool.

  • Middle Finger

    I thought Oblunder created more jobs on his watch, i guess this would be one of the many examples what the lame duck job creation is really looking like.

  • Bob

    107,600 employees worldwide (at end of 2013)
    55 percent of employees reside in the U.S.

    • simonts

      Very few high tech manufacturing companies come even close to that percentage. Intel kept most of its fabs in the US. Other semiconductor companies, like TI as an example, moved most of their fabs out of the US.

    • FastForwardAfter

      Does the 55,000 include foreign workers residing in America. What is that percentage?

  • Mahmud

    Large organizations tend to become overstaffed over a period of time. some jobs become redundant due to technological changes and market demands. Of course there are those whose performances do not meet company standards. 2% attrition is not large under the circumstances provided it is not to be replaced by cheaper induction.

    • bogidu

      Either you’re in HR or you’ve never worked for Intel. Of the 3 ‘headcount reductions’ I went through, I always saw new H1B’s and/or green badges arrive shortly after the blue badges walked out the door.

    • Mark

      Certain engineers become out of date, or orphaned in EOL projects. That’s a fact of life. But in the past, employers used to find other roles for those engineers, whether in marketing, HR, finance, etc. — all fields in which engineers are easily adaptable. The mid-career employer-paid MBA was quite popular as a means of keeping such talent in the organization even when usefulness as technical engineers was out-lived. Today, they just dump them and hire more H-1B’s.

  • AllanDale

    Intel would have gone out of business a long time ago if poor old Steve Jobs hadn’t thrown them a life raft by adopting their underforming chip for the Mac. Lucky for Intel, the Apple OS is an underperformer as well.

    • SofaKingCool1

      LOL….when Apple decided to go with Intel chips in their Mac Pros and Macbooks, they had no more than 3% of the consumer computing market.

      They now have about 8-10%.

      So who did who a favor?

      Intel makes the grand majority of their money in servers and data centers…and Steve Job helped that how, other than convincing his lemmings to buy his redundant consumer products like iPhone, iPod, iPad…

      • AllanDale

        Apple just went from the computer business into the phone business only they called it a computer. This merely demonstrates that Ken Olsen was correct: The average person doesn’t need a computer he needs a phone that displays pictures and plays music. Apple is just a hedge fund that resells pink Foxconn kit to fashionistas. That’s why they hired a French fashion designer to show them the way now that Steve Jobs was not around to pick out matching colors to his man purse.

        • SofaKingCool1

          LOL….well played.

        • Dave T

          Apple went portable because after over 30 years they finaly realized they could not compete, no matter how hard they tried. Not that Apple has ever had a bad product,, Mac is still the number 1 graphics machine. But the fact is that you are arguing 2 very different market lines. One of which Apple has never been a serious contender.

          • AllanDale

            Steve Jobs famously said that preemptive processing was a “ridiculous” feature for a personal computer. You can’t be more wrong than that! I remember during the dotcom boom going into the 24-hour CompUSA on Market Street and laughing with a salesperson about how easy it was to sell a PC over a Mac: All you had to do was show how you could listen to music, check your mail, and browse the web at the same time. Apple almost went out of business during those years and Jobs was forced to go begging for an open-source 20-year old distro of Unix to pull his irons out of the fires of oblivion (He didn’t have the funds or time to reengineer the Mac OS from the ground up to allow preemptive processing, aka multitasking or concurrent processing).

    • Bill Coryell

      Actually, Intel was working with Apple in the 90’s to move Apple away from the Motorola microprocessor. Intel’s big revenues are coming from the Data Center products they supply.

      • AllanDale

        Intel went after Apple when Microsoft busted the duopoly by certifying the vastly superior AMD processors for Windows. The rent-seekers at Intel decided to show Redmond that there was more than one game in town. And anyway, Apple was tired of getting snarked by the “Intel Inside” campaign that worked with the clueless public. IBM only went with Intel processors because they were the cheapest and they felt that Motorola was sufficiently committed supplying the original Apple and Sun Microsystems computers.

        • 00dave

          Allan, if AMD chips are so vastly superior, why are Intel I7s in the latest AMD showpiece computer, the Quantum? Also remember AMD only designs chips now, they couldn’t hack it as a manufacturer and they have to pay Intel license fees to use heh X86 architecture Intel designed. One more thing, when AMD was just getting started, it was Intel’s Bob Noyce who floated AMD’s Jerry Sanders a loan so he could make payroll, otherwise AMD would have been a far distant memory.

          • Brian Lay

            the licensing fees go both ways. Intel “license” x86-64 bit from AMD… they were too high on their Itanic disaster to extend the instruction set… AMD did that.

          • simonts

            Intel made many capital mistakes in its history, Itanium was one of those, caused at least partially by HP. However Intel has always recovered and came back. That is what makes a great company. AMD has been a loser since Sanders retired.

        • simonts

          “Vastly superior AMD processors”, huh? LOL!!! AMD can macth or compete with Intel processors once or twice in a decade for a quarter or two. AMD is in its death spiral while Intel is still the number one IC company in the world.

          • AllanDale

            Intel processors were so superior that Intel had to slip OEMs kickbacks under the table to insure that they were used. This practice resulted in one of the largest antitrust payouts of all time in 2009: $1.2 billion to AMD along with additional consideration. The founders of Intel were Israeli organic chemists (ie, process engineers not electrical engineers): Their chip design was always considered second-rate. That’s why Apple and Sun passed them over in favor of Motorola. Only IBM which thought the PC was a passing phase chose Intel and then only because Intel was the cheapest.

    • simonts

      Actually most of Intel’s profits come from the server/data center segment. Do some homework before posting.

  • odddave

    Krzanich should shut his yap about “lower job performance.” He is painting all of these people with a Scarlet Leter that can affect their job prospects. I bet Intel legal winced when they read that.

    • bogidu

      Yep, “lower job performance” within that “Intel Culture” that they are so proud of generally has to do with not attending happy hour with your boss and getting knives stuck in your back right around R&R time.

    • simonts

      Intel has been known to trim from the bottom even in good times, almost every year. Everyone knows this in Silicon Valley. You or I may or may not agree with this policy but everyone knows and accepts it when they apply for a job at Intel.

  • Stately M White

    Why only 165? Is this article missing a zero or two?

    • bogidu

      That’s just Santa Clara, the article also states 152 at Folsom. If you take out a small percentage at all of the Intel site worldwide, it adds up quickly.

      • simonts

        It is still a SMALL PERCENTAGE. This is nothing compared to the tens of thousands of very competent engineers laid off by HP’s ever more incompetent management during the past decade.

  • primary focus

    soon to be replaced with h-4/h1b/outsourced

  • H1BisTreason

    If all these Fake Degree H-1B/L1, plus all the Visa Over-stayer and Illegal Aliens Job thieves scabs are so hardworking and so highly skilled and so smart, then why isn’t there own country bending over backwards to keep these people? Is India/China/Mexico or Euro-trash countries so well developed that it no longer needs its own hardworking citizens to maintain its economy and infrastructure? Of course not, this is really an attempt by the governments of India/China/Mexico and Euro-trash to shirk millions of its poor citizens off on another country (the US) without any consequences.

    • Cliff

      You know, Americans will be better off learning ways to “better” themselves and make themselves more compeitive than to vent all the time. If these foreigners can acquire a job at a foreigner country, they deserve it! If you as american can’t even compete with a foreigners on a job interview, you deserve it!

      • Dave T

        AHMEN

      • FastForwardAfter

        Americans are not allowed to compete for these jobs reserved for foreign H-1B workers. This is wrong.

        • Cliff

          What you just said is pure ignorant and show how little you know the requirements of H1B jobs! Read the official rules from
          Government about hiring H1B. Not only the company has to prove they have to show that can’t find competing locals by interviewing locals (they have to disclosed the resumes and the H1B salary has to high enough to meet the national standards in the very field they are hired for!

          • FastForwardAfter

            It is you who is ignorant. The law does NOT require that you first seek a U.S. worker before seeking an H-1B worker.

            I challenge you to cut and paste anything from the USCIS website or find any law that shows any such requirement. THERE IS NO SUCH REQUIREMENT.

          • Cliff

            If all the locals are as ignorant you and yet acting like expert no wonder all the foreigners are winning over jobs . Here is the rules. Before any company hire any foreigner they have to go thru a process called perm:
            http://www.hooyou.com/lc/perm_requirement.html

          • Mark

            The PERM process is easily manipulated. Law firms even give seminars on how to do so: https://www.youtube.com/watch?v=TCbFEgFajGU

          • Cliff

            He is talking about a job that has been filled. Prior to that the company does go thru the normal process of interviewing candidates. Most Jobs that sponsor h1b do have to go thru the regular interview process. Plus companies do have to pay more to sponsor a foreigner being hired! Also h1B has a limited quota each year which means companies risk hiring a foreign candidate then loosing them when the lottery doesn’t select them. So you think why would a company want to go thru so much trouble to hire a foreigner if they can find a local? the case of intel, they hire mostly master degree or Phd engineers and there aren’t many local Phd electrical engineer in USA!

          • Mark

            Bachelors level engineers can do everything Masters degree recipients can do. The only difference is that the Masters degree guys did some research and wrote a thesis. In both cases, significant proprietary training is required. The preference for a Masters degree is largely a function of taking advantage of a certain aspect of H-1B that allows Masters degree holders to qualify under a different quota than the general H-1B quota.
            As for why they would want to hire foreigners, it comes down to money. The foreigners are cheaper to hire and cheaper to retain. In many cases, because of another problematic work visa called “OPT”, they already have been working for minimal pay for the company, so there’s not really a good faith recruiting effort being expended to find Americans anyways. This is why you see so many entry-level positions now demanding “3-5 years of ‘experience'” — the H-1B who is earmarked for the position already has that ‘experience’ working as a low-paid OPT intern.

          • Mark

            And yes, there are some EE PhD EE’s in the USA. The ones I personally know have very hard time find jobs. The onslaught of foreign PhD’s has destroyed their careers and the plethora of cheap Masters/Bachelors-level labour has removed any incentive for firms to look to their skills.

          • Cliff

            Sorry may be the companies you dealt with hire crappies H1B and pay them low. The ones I dealt with hire the best of the world doesn’t matter it’s local or not. And they aren’t cheap to hire!

          • Mark

            No, if they were so good, they would have been hired on the O-1 visa. H-1B is not an appropriate visa for “the best of the world”. And yes they are cheap to hire. Cheaper than the market clearing price if the US marketplace was limited to only US citizen talent.

          • Cliff

            Best candidate for the job required! Not all the jobs need someone who has numerous awards.

          • Mark

            There are plenty of Americans who can fill the jobs if only they were given a chance with good faith recruiting efforts. But as it stands, US citizen candidates can submit their resumes to firms like Intel and not even receive a response before a foreigner is hired. So many young and bright lives ruined by firms like Intel hell-bent on using foreigners in preference to domestic US citizen talent.

          • Mark

            Then hire an American. But fact is, American resumes are thrown in the trash so foreigners can be hired. Its disgusting.

          • Cliff

            I understand that you’re sentimental about some unfair h1b practice exits. However this shouldn’t underline the entire h1b program. The h1b candidates does go thru rigorous interview process and do have to compete with locals to win a job.

          • Mark

            The problem is, locals aren’t being invited to even ‘compete’ for these jobs. Recruiting is not being done in good faith. For instance, requiring 3-5 years ‘experience’ for entry-level positions is not good faith recruiting.

          • FastForwardAfter

            You are the one who is ignorant! ‘Perm’ certification is not a requirement to hire an H-1B. Perm certification is for filing a green card, not an H-1B. A company can rotate as many H-1B employees for 6 years and never file for a green card for even one H-1B employee.

            Look it up.

      • Mark

        Americans aren’t even invited to job interviews to compete. That’s the problem. Top grads in the STEM fields who are US citizens are left out there to rot, and their skills decline, while the H-1B’s sail into the jobs after being on OPT.

  • H1BisTreason

    Hollywood is also committing Deep Treason!
    No matter what American Movie or American remake they make,
    NO AMERICANS NEED APPLY!
    Hollywood is 100% Controlled by the most American Hating Britshits/Anglophiles!
    So are you not very Sick and Tired of all the Britshit Accent all over all America Movies, TV and Media? I know WE ALL ARE!

    • simonts

      Talk only for your prejudiced self!

      • H1BisTreason

        simonts aka Perdeep Idrinkcowurine Gupta
        “Talk only for your prejudiced self!”

        That’s it? That’s the Best you can do? It’s time for you to be DEPORTED right back to whatever MUD HUTS you ran away from.

        • simonts

          I was wrong. You should talk only for your ignorant, uneducated, prejudiced, idiotic, disgusting self.

  • H1BisTreason

    H1-B visa is so misleading. The H1-B visa holders are NOT temporary-visa holding workers. They eventually can adjust their status to stay in the USA and take away your jobs forever. I live close to Redmond, WA where Microsoft main campus is at. Microsoft hires lawyers to apply green cards for these foreigners. Now Microsoft are full of employees of Indian and Chinese foreign workers and every single one I know got his green card after 5-10 years waiting. Also thank to the stupxd “chain migration” policy, one “skilled” person can bring in 10-20 minors and unskilled old adults including their siblings and his/her family with children. The USA has become the dumpster of the 3rd world countries. This needs to be stopped.

    • Cliff

      The quicker they give these foreigners a green card. The sooner they can start their own company and hire locals! Lot of these people ON H1B has the skills to start up companies in this Country but they can’t because H1B only restrict them to work for the company sponsoring them and they can’t do any side business. And as a foreigner starting up a company requires 500K at least to get citizenship. And yes it’s a temporary visa. The moment these people are fired. They have to leave this country! They have to abandon their home, their friends, their car and return to own country!

      • PerturbedPundit

        A recent study showed that companies founded by immigrants had a higher rate of using the H-1B visa than companies founded by non-immigrants. http://www.economicpopulist.org/content/immigrant-founders-rest-story

        • Cliff

          I didn’t think it its fact: Companies like Google, Goldman Sachs, norstorms, yahoo, eBay….are all founded by immigrants.
          http://m.huffpost.com/us/entry/3116172/slideshow/292963

          And yes some of tech companies hire H1B employees but they hired locals too!

          • FastForwardAfter

            Not one of those companies were founded by an H-1B. Not one.

            I challenge you to name one significant innovation or company founded by a person on an H-1B.

            (Rent-a-coder bodyshops do not count)

          • Cliff

            Again what u just said here show you don’t know how H1B works. h1B workers aren’t allow to start up a company while they are working for an company that hired them. It’s after they become USA citizen or their following generations that does it!

          • FastForwardAfter

            Can you name any former H-1B who made any significant innovation?

            THERE ARE NONE!

            It is obviously YOU who doesn’t know how the H-1B visa works.

          • Mark

            The O-1 visa is the only visa used for true foreign “best and brightest”. The entire H-1B program can be cancelled without any negative effect on the US economy.

        • simonts

          So? Your point is?

          • PerturbedPundit

            I think it’s pretty clear. Think about it and it’ll come to you. Especially after your “Even IF they hire H1-B-s (an assertion you have no factual support for)” comment.

        • Mark

          Of course, they only hire their own.

      • Porkchow

        Once they start their companies, what makes you think they will hire locals instead of getting even more H1B’s?

        • simonts

          Even IF they hire H1-B-s (an assertion you have no factual support for) those H1-B people live here, pay US taxes, shop at Safeway (or Whole Foods :-)) and support our schools with their property taxes, etc.. It is MUCH better to have them here with their H1-Bs compared with those same companies setting up shop (design centers) in India, China, etc.

          • FastForwardAfter

            Surely you are not saying American workers bypassed for the jobs would not have paid taxes if they were allowed to compete for those H-1B jobs?

      • Mark

        That’s simply not true. H-1B’s are not best and brightest. They’re just workers brought into replace/displace Americans. Most companies receive a plurality of qualified resumes relative to their hiring requirements. The H-1B visa can be safely abolished.

    • simonts

      No one can take away your engineering job if you are competent, honest, work hard and keep your skills up-to-date. This whining reminds me the whining of the teachers’ union which emphasizes support for teachers who do not want to or cannot teach, instead of supporting the good teachers who represent excellence in education.

      • FastForwardAfter

        simons, you lie. Disney and Southern Edison workers were all current in their skills and were still replaced by untrained H-1B workers.

      • PerturbedPundit

        You’re very naive.

      • Mark

        Smartest guy I know, a genius in embedded programming, lost his job at Lytro a few months back when they summarily axed 86 employees (a division) because it wasn’t making money. Its disrespectful to claim that people can’t lose their jobs if they’re competent. Its MBA’s who run the show, not engineers who only hire or fire based on merit

        • simonts

          Your “argument” is hearsay, at best. Furthermore, what is wrong with shutting down a division that fails to make money for a long period of time. After all we live in a capitalistic system where companies are supposed to make a profit. One can always find exceptions but in general, on average, I stand by my comment and it is not “disrespectful” just factual. In high tech people are the most important assets of any company that wants to strive, because they are making the company innovative and competitive, they are the only ones capable of building a mote keeping competition at bay. Every manager/leader worth the name knows this. Hence, typically no high tech company would lay off good productive engineers (unless its management is utterly dumb, which happens, see HP). There are exceptions to every rule, and there are exceptional times (like the great recession in 2009 and the tech crash in 2001, as two examples) when the normal rules do not apply.

          • Mark

            My post wasn’t an argument, it was a statement of fact. And if engineers were in significant demand, my friend would have just walked across the street. But engineers are not in significant demand, at least not American ones. Firms like Intel hire thousands of engineers a year from overseas, but don’t even give the domestic talent the basic “courtesy of a response” to job applications. And plenty of companies lay off very productive engineers to replace them with H-1B’s which ostensibly cost less.

          • simonts

            I do not knwo where you live, certainly not in Silcon valley. No company “give the domestic talent the basic “courtesy of a response” to job applications.” You are mixing up European customs/courtesies with Americans. Your post gave a single example (true or invented) to argue against my point, hence it was an argument, albeit an irrelevant one.
            Furthermore, “ostensibly” costs less; it is against the law paying less for H1-B via holder for the same job in the same geographic area. If it happens it does because the H1-B holders are essentially slaves without the right to change job until they get a green card. If we eliminated this ridiculous restriction then the market would make sure that salaries are approximately the same and equitable.

          • Mark

            The “courtesy of a response” is simply responding to job applications professionally with a thank you note, feedback if an application was deficient, maybe a small token of appreciation for the applicant spending their time filling out the application form, etc. It also served a marketing purpose since many unsuccessful applicants do eventually find other jobs and may be in the position to use/recommend products made by the employer. But since American tech firms are in receipt of hundreds of resumes for each advertised posting, they don’t need to. Hence, H-1B’s can be safely deported and should be deported to ensure the health of the US labour market. The “courtesy of a response” is a very basic professional courtesy that formerly was extended by US engineering firms, including Intel, when there was actually a legitimately tight labour market.

          • Mark

            And everyone with one iota of labour market knowledge knows that H-1B’s suppress compensation both on a micro and macro basis for US STEM talent. Otherwise H-1B wouldn’t be interesting to the employers at all. Why hire people from another country unless there’s going to be a significant cost savings, especially when there’s more than enough talent available in America? It all comes down to cost, perceived and real.

  • H1BisTreason

    Ted Cruzes who himself is an Illegal Alien and a Cuban Canadian! LOVES Cheap labor. With over 35 Million Americans Unemployed and Millions more Underemployed the “Tea party Senator Ted Cruz added an Amendment to Immigration Legislation to INCREASE H-1B Visas by 500%! YES you heard it RIGHT! 500%! What a Traitor!
    WAIT! So Ted Cruz and Obama both want to flood all of the U.S with millions and millions more cheap cheap labor?
    Go on. I Triple dare you to watch this rat commit outright Treason:
    Please youtube: “Sen. Cruz Amendment to Immigration Legislation to Increase H-1B Visas”

  • Del

    They are being laid off and replaced by workers from India. Some employees are training their H-1B visa
    Leading offshore outsourcing firms use the H-1B program to replace American workers

    • MikeP

      there are also many employees in various companies with H-1B visas working as highly skilled engineers in high tech companies in silicon valley. it’s not all “off shore”

    • MikeP

      people in the U.S. do not want to study to be engineers because our TV and movies say that engineering is “nerdy”. especially in hardware (chip) design (as opposed to software, programming). in India and China engineering is highly respected. so sometimes companies have to bring over engineers from there to California

      • MikeP

        well there are lots of different people in a population of 1 billion! the ones (engineers) I work with here in CA have masters degrees, make the same amount as other people at their level, and are brilliant, and speak excellent English. some are at my level, some above, some slightly below, but all with a great standard of living

        • MikeP

          there have been plenty of TV shows and movies glorifying lawyers, doctors, and detectives. name one show or movie that portrays engineers in a positive light

          • simonts

            There used to be many in the ’60-s. Not anymore.

          • FastForwardAfter

            TV shows are how foreigners view Americans. Amercans are here on the ground and don’t use TV shows to view themselves.

            The U.S. graduates more engineering students than the job market can absorb.

          • Mark

            So true. Even top grads from the nations universities are hard pressed to find a job unless they had previous internships.

      • Cliff

        Ur accusation and generazation is utterly ignorant. Are u donald trump?

      • simonts

        An utterly disgusting and ignorant comment!!!

        • Mark

          You can’t deny that a large percentage of India’s population is without proper running water or sanitary sewers. The fact that we import engineers from that country when they’re desperately needed “at home” is morally reprehensible.

        • H1BisTreason

          FACTS are FACTS! The truth shall set you free!
          The truth is NEVER EVER disgusting and ignorant unless you are a Criminal!

          • simonts

            You do not even have a clue of the meaning of “truth”, ignorant hateful idiot!

      • Mark

        Plenty of Americans study to be engineers. But they hit a brick wall when they try to enter the workforce and are either rejected by an employment process that is rigged to only hire foreigners, or find their resumes lost in the sea of applicants. I know top grads from a decade ago, in EE, CS, IT who have submitted their resumes to hundreds of tech companies, only to receive no response whatsoever. American talent just isn’t in demand, that’s all.

    • PerturbedPundit

      No – leading US corporations use the H-1B program to replace American workers. The offshore outsourcing firms are just the middlemen used by the US corporations to obscure their complicity in abusing the H-1B visa. Without them, the US corporations would apply for H-1B’s directly – still replacing their domestic workers.

    • simonts

      At HP for sure. At Intel, not so much. Are you Intel bashers aware of the fact that most of Intel’s fabs and manufacturing facilities are kept in the US? I doubt it.

      • Mark

        At Intel, definitely. Intel has been a big user of the H-1B and basically ignores domestic applicants.

        • simonts

          That may be your belief, without any factual/data support.

          • Mark

            I have quite a few classmates who sent applications to Intel only to never hear anything back. EE/CS degrees from a top-20 school, good grades and projects, etc. You can look up Intels’ use of H-1B’s in various online databases — so plenty of factual data to support such.

          • simonts

            Your real or made up classmates prove nothing. Intel has no obligation to hire them. But if Intel hires them they must know and understand that Intel has a long standing policy to prune the bottom ranks every year. You may disagree with it (and I am very skeptical about this policy) but this is their policy. One should not go there to work if he/she is not OK with it.

          • Mark

            Nothing made up about my classmates. You should be ashamed of yourself for the trolling. Intel has a moral obligation to consider qualified US citizens before hiring foreigners on the H-1B. Yet they refuse to do so. In fact they didn’t even talk to my classmates who applied.

          • simonts

            Why would i troll for Intel? I have never worked there and never will, partly because I disagree with their management philosophy which is based on confrontation instead of cooperation.
            Intel is a corporation, and contrary to the supreme court’s idiocy corporations are not people, hence they have no moral obligations, per se.
            BTW, the original H1-B rules mandated that companies hiring people with H1-B can do that ONLY if they tried to hire Americans that can do the job first and could not find any. Hence, originally the law mandated what you say as moral obligation. I know that from experience, having hired engineers with H1-B in the ’80-s. The extra work and paperwork was so much that every manager tried to avoid it as much as possible. This all changed by the end of the Reagan era, when this rule was quietly abandoned, together with the clear original intent of the H1-B law, which limited it to “exceptionally qualified” engineers/scientists or exceptional talent in general. I do disagree with how HP and many others distorted the rules, hiring hordes of H1-B programmers and engineers who are mediocre at best.

          • Mark

            Well Intel has the H-1B process down to an art, so it doesn’t cost them much of anything to hire foreign rather than domestic. In fact, they achieve massive cost savings on account of being able to keep compensation suppressed. And H-1B’s are essentially captive to their employers until they get a Green Card. Since Intel doesn’t even bother calling up American candidates in many instances before going with the H-1B’s, its obvious that they have quite a preference for hiring foreign talent instead of America’s own.

          • Mark

            In fact if you look at the numbers: http://www.myvisajobs.com/Visa-Sponsor/Intel/267260.htm , and have a reasonable idea of what Intel’s workforce demands are in a given year for engineers, its a reasonable assumption that very few domestic applicants in those fields were hired by Intel.

          • simonts

            Number one, the site you pointed to does not prove your point. Number two, the average salaries given on the site are not “low”, over $100k for H1-B and over/around $125k for green card holders. Furthermore:

            “Note: Before Intel Corporation can hire foreign workers permanently or
            temporarily, it must file labor certifications with the Department of
            Labor(DOL), demonstrating that it is paying the required wage for the
            positions in the geographic region where the jobs are located. Above
            table reports Labor Condition Application(LCA) for H1B visa and Labor
            Certification(LC) for green card filed by Intel Corporation. The data
            only indicates the number of applications filed by Intel Corporation. It
            does not mean that Intel Corporation actually got the visa and hired
            the workers.”

            Bashing immigrants and trying to blame them all our ills is so outdated, bot to mention ignorant.

          • Mark

            $100k is not high. And the LCA process is pretty meaningless.

          • Daniel S

            I agree, you can only get a pretty run of the mill Senior Engineer for 100K, as that is well below the average pay for Senior Engineers.
            from my understanding, they are only hiring people so skilled, so specialized they have to search Internationally. But yet, somehow they can pay almost a full standard deviation below the average pay and claim their pay is high.

          • Daniel S

            Simonts,
            No one bashed anyone, they just said their opinion on the numbers. When I left my last big corporate gig a few months ago, I was the second to the last developer who was born in the USA out of a fairly large staff. (Not counting management, who didn’t get fired for any little thing, like many of my American coworkers did.) You can say what you want, but the fact is, there are more people coming into this country legally than what our government admits to. There are so many of foreigners working in IT that in many companies, there is no one there (non management) who was born in the USA.
            The fact that I see these things first hand doesn’t mean I blame anyone who is immigrating into the USA for this situation. I don’t. That would be dull minded to blame someone for trying to better themselves.

  • Miriam Dormitorio

    The point is: Why bring jobs to China when Intel can bring workers from China into the US mainland? See the difference? Other companies must follow Intel & our economy will not suffer like what we had in the past.

    • MikeP

      most of my co-workers were not born in the U.S. but still are brilliant, highly skilled, speak perfect English and work in Silicon valley in California.

      • Daniel S

        yeah me too. Most of my coworkers were born in a different country. And that is also the problem. Nothing wrong with bringing some people in, but certainly not to the point of being a majority.

        • Mark

          I have no problem with bringing people in, but the proper visa is the O-1 visa, and they should be better quality than is available in the US workforce. The problem with the current use of H-1B is that it is used for replacement workers, with even highly ranked US grads not even given the basic “courtesy of a response” from US domestic tech firms looking to hire these days.

          • Daniel S

            Well, I don’t think anyone is going to ever ask us voters our opinion on this matter.

    • simonts

      Do you have any facts supporting your assertion regarding Intel specifically bringing in workers/engineers from China?? I seriously doubt it.

  • Jim

    As of noon, 6-26-15, Intel stock was down 3.19 %. The market doesn’t like Intel’s move.

    • simonts

      Come on. Intel was down because MU came out with weaker than expected earnings. The Intel sell-off was the typical Wall Street speculators’ over-reaction.

  • Del

    Ask anyone who has been replaced in a tech job if his replacement was given a higher wage than he was making. This is economics 101. Flood the market with cheap labor and watch as wages fall.
    You don’t need to be a rocket scientist to understand the law of supply and demand

    • MikeP

      in silicon valley with people with the same level of education and experience, they get paid the same. I know first hand

      • Daniel S

        That doesn’t mean anything. The Engineers in LA and SEATTLE also get paid the same. The difference is that there is a fricken almost double cost of living expense there, but they only pay the same as the other cities on the west coast.
        So, they “could” raise their pay to offset for the cost of living, but they don’t. Instead they lobby congress and get people from third world countries who will work for cheap. (When you consider cost of living)

        • simonts

          If you actually look at the data, for example the IEEE salary survey, you will find that engineering salaries are actually higher in Silicon Valley than in other areas. My guess is that the difference actually covers the higher living expense (e.g. higher cost of food, gasoline, etc.) EXCEPT the much higher housing prices. And those are the result of the success stories of Silicon Valley, whether Apple, Google, Facebook, etc. It is very difficult for “normal” “average” engineers to compete in housing with engineers lucky (and good) enough to have worked at Google, Facebook, etc., early on making millions on their stock options. This problem has nothing whatsoever to do with H1-B visas.

          • Daniel S

            Glassdoor shows the average pay for Senior Software Engineers in Seattle, Los Angeles and Silicon Valley all within five thousand dollars of each other.

          • MikeP

            you are right, the cost of living is huge and the pay only slightly higher in silicon valley. it can be difficult for a family especially if they have only one income. in terms of pay, one big tech company will say they are comparing themselves with 10 other similar tech companies that also pay that amount (if you look at the total of salary, bonuses, stock, benefits, etc) nothing to do with natioanality however

          • Mark

            Yup. And good luck surviving over the long term on a $124k salary in the Silicon Valley. Not even enough for home-ownership based on traditional metrics of 3X income.

  • Del

    These guys just want cheap labor. These companies just don’t want to PAY Americans. 80% of the open jobs in the USA could be filled next week, but corporate America wants cheap labor.

    • MikeP

      come to silicon valley. the indians, chinese, and others with H1-B visas (hardware and software engineerings) make the same as other people at their level. Americans in general do not want to study electrical engineering.

      • John Galt

        Cant afford to, an ee degree costs $100k in this country. Got to pay for the football staadiums. The indians can get a degree for a couple thousand.

      • simonts

        They do. Just few of them go beyond a 4 year B.Sc. degree.Th reasons include cost, which went exponential during that past decade or so, and lack of stamina/dedication. Furthermore, the earning power/cost ratio is much lower compared to an MBA degree for example.

        • Mark

          Companies like Intel upped their requirements to a “Masters” degree simply because they were overwhelmed with Bachelors-holding applicants. The “Masters” degree, a research degree, teaches nothing additional that Intel would need, except in very narrow research areas.

          • simonts

            Dead wrong. You can call the PhD a “research degree” but not the masters degree in EE. Only someone who does not have it and/or is not capable to accomplish the requirements to get it, would say that a masters degree “teaches noting additional that Intel would need”.

          • Mark

            Masters = Research Degree at all major top-tier universities. Basically you take jazzed-up versions of undergrad courses, and then write a thesis and/or report based on research into a field with a professor’s guidance. Intel artificially wants the Masters grads because they tend to be disproportionately foreign (= cheaper), and because they simply are overwhelmed with otherwise perfectly qualified Bachelors candidates.

          • simonts

            Based on your comment you are clueless.

          • Mark

            Nice try at the ad hominem, but you sound like the clueless one. Masters = Research Degree. You do research (usually with the guidance of a professor), take a few classes, write a thesis, and defend such thesis.

          • simonts

            Boy, you are indeed clueless, no offense meant, just stating the fact.
            Yes you do research under the guidance of your professor as a PART of your studies and education for a masters degree. You also take advanced level classes in every semester which deepens your knowledge in your field. The sad fact is that the first two years of a standard 4 yeas B.Sc education is catch up/make up for basic math and science which our high school education system fails to teach nowadays. Most engineers whom I hired with BSc degree lacked knowledge in some basics. One engineer I hired from Berkeley did not take any classes in control theory because the class was impacted and he was late signing up to it twice. This latter is just an example, does not necessarily represent the rule. As far as belittling the value of a masters thesis: you do not understand how much it adds to your engineering skills unless you tried to write one.

          • Mark

            Yes, a Masters is a research degree. No amount of your wordsmithing is going to change that.

      • Mark

        Are you kidding? The schools are full of Americans studying Electrical Engineering. The only problem is, there’s no jobs for them when they graduate. Companies like Intel prefer H-1B’s and have basically rigged their hiring processes to exclude qualified domestic talent.

        • Daniel S

          It is not just Intel. It is many if not most large corporations.

      • Daniel S

        Mike,
        To recruit people from other cities, they would have to pay them the equivalent that they would need in Silicon Valley to live the same lifestyle as they currently live. Which is about half again what they currently pay. Silicon Valley itself doesn’t pay the “going wages”.

        • MikeP

          well I work for a high tech company in silicon valley as an engineer and talking to others, people of the same education level and skillset/experience get paid the same regardless of whether they have an H1-B visa or are u.s. citizens. of course the cost of living is insane here, so in some cases the wages versus the cost of living mean they could have a better standard of living if they lived and worked elsewhere (me included) for some it is not based on the number of years but instead their skillset and dedication and position, like some take longer to get promoted than others.

          • Daniel S

            Mike,
            That is kind of the point. If they paid the going wage in Silicon Valley, adjusted for cost of living, then there would be many more people who wanted to work in high tech there.

            Instead it is like taking fifty percent cut in pay (or worse) to go there because the cost of living is so high. IF they didnt have so many H1-Bs then they would have raised the pay by now to attract more Americans. But since they dont have to do this, they dont.

          • MikeP

            so what do you think of people who have worked here for years and used to have the H1-B visa and no longer do, as they have their green card of have become citizens. should they be sent back? I like my co-workers and their diversity and learning about cultures that are not white or African American. A nice break from the white vs. black debates that some people have. I don’t care about skin color myself, it’s just melatonin, people obsessed with that should get over it. not you, but some people in this blog sound xenophobic to me.

          • Daniel S

            Mike,
            I don’t blame you for being a skeptic, but remember, it wasn’t that long ago that the billionaires of silicon valley were caught conspiring to essentially cheat people of a competitive wage. Imagine this. Billionaires so petty, so greedy as to conspire to cheat workers out of a few thousand dollars a year. Sounds incredible and impossible, but it is a matter of record now.

          • MikeP

            I have heard management say that employees say the rent and mortgages are insane here and we should get paid to compensate for that. they respond that compensation is not based on the cost of living, it is based on what 10 other similiar companies around here are doing

        • MikeP

          regarding “going wages”, one company compares itself against 10 or so similar companies in silicon valley, this is one thing that influences their wages

  • John Galt

    Making room for the women and minorities?

  • John Galt

    Its about time to unionze the tech workers and tell the management to go f themselves.

    • Dave T

      Unions would only kill whats left of the industry. Unions are a dinosaur and have no buis. in current markets.

      • simonts

        Ignorant comment.

      • John Galt

        What markets are those? The ones competing with child and slave labor from China?

  • Dave T

    There are all kinds of opinions on this subject but lets look at one very simple rule of the market. Computers on the market today are faster,more reliable and last longer than they did just 5 years ago. Hello,clue phone people. Demand ( another person mentioned supply and demand) this is the simple basic root of all manufactured products. As demand flattens out or goes down sales and therefore profit is going to go down. Even if a company is having a good year in say its software division or licencing it may not be in hardware sales. The fact is I just bought a new laptop for the first time in 6 years. I prob. will not buy another one for another 6 or 7 years. If not longer. I mean seriously my current laptop will do anything I am likely to do in my lifetime. The only reason I would replace it is if it just flat wears out. Now I know I am only one person but lets be objective here. I used to replace my PC every year or 18 months. That’s how fast tech was improveing. Now it has gotten to the point that unless I go into graphics,enginering or huge spreadseets I don’t need a more powerful PC. All this talk about unions,china,labor scales etc. have nothing whatsoever to do with the current market and If you think it does you need to go back to college, you don’t understand the very basics.. Its a simple matter of supply and demand. If you passed Economics 101 you would understand that.

    • Daniel S

      So, you are saying people are too dumb to need any better computers than what we have right now? They wont ever do anything to take up that much processor power?
      I think it is just that right now, Software is behind, in the perpetual race between software and hardware.

  • Truone

    As a veteran of Silicon Valley, I can assure you the layoff numbers announced are at least half off, if not more.

    • Dave T

      low market demand equals layoffs,,, not the other way around. That’s 3rd grade math. Get over it.

      • Truone

        Dave, I gather English is not your 1st language. All I said, Intel laid off twice as many workers as they announced. Now, this would be 2nd grade English, if you were not a foreign born techy.

  • copykon

    It’s U.S workforce will be less than 10 percent of it’s global workforce.

  • simonts

    Pete Carey, the author of this piece, should go back to third grade and learn how to compute percentages. Intel’s Santa Clara headcount is 6,200, per their web site. Laying off 165 employees represent 2.6% of their work force. Every layoff causes pain to the people who are affected, no doubt, but this is a very small layoff in relative terms. HP laid off vastly more people in relative terms multiple times during the past decade+.

  • Yoda

    wah wah wah I’m an entitled white person. How dare they fire me. Unions!!!!

    • MikeP

      I agree

  • Daniel S

    Facts.
    1. If you graduate a good college with a four year degree in computer science, or IT, your odds of being without a job in your field is right at fifty fifty on year after graduation, unless you are black, then you have only 25% chance of finding a job in the field.
    And while this is going on, virtually every politicians in DC is aware of this, and as far as I know, not a single one of them has blown the whistle on this situation, but instead, they all, Democrat or Republican, pretend to believe there is a shortage of Engineers.

    • Mark

      So true. And it was my experience that higher-end grads suffered poorer job prospects than the low-end who had much lower expectations.
      Also women face pretty bad odds if they have CS/IT/EE degrees, especially if they desire to get into the technical end of things. They tend to be shoe-horned by employers, if they can find jobs, into non-technical roles. Which is really unfortunate.

    • Kyle Coates

      You have to take into account the dumbing down of American Schools. Every applicant is gaurenteed money through graduation so it is the school’s best interest to keep the material easy to keep them in school for the student loan money.

      Just because they have a degree that does not mean they are qualified for employment.

  • H1BisTreason

    H-1B is a giant criminal mafia enterprise used by the criminal nation of India to jam Million and Millions of criminals from India into the U.S. They take over companies, fire all the American workers, can’t do the work, clean out the companies, send their paychecks (our capital) back to India, and then when the company collapses, they move onto the next company and repeat the process. They absolutely will not hire Americans. Anti-Americanism is rampant in Silicon Valley. CA has the country’s highest foreign-born population, and not surprisingly, the worst state economy in the nation. And you wonder why we’re losing jobs in America? At the head of this criminal mafia is Azim Premji of Wirpo – a an extraordinary conman from India who should be arrested for criminal fraud the next time he steps foot in America.

  • H1BisTreason

    All H-1B/L1 visa holders and Visa Over-stayers plus all the Illegal Aliens and All who hire them are All the Real Terrorist!
    Please Please Youtube: “America’s Bogus Skilled Labor Shortage”

  • H1BisTreason

    The Favorite soft drink in India?
    Drinking Cow Urine. It’s a FACT! So much for the Best and brightest.

  • Firozali Mulla

    One of the huge firs goes bang and who suffers the poor more then any Why does the USA still stink USA is the Silicon valley It is now Bangalore if I am not mistaken

 
 
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