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Friday, October 21, 2016

Intel 3Q16 report shows no significant reduction in workforce in spite of massive layoffs

The 3Q16 quarterly report is available in PDF form at this link:
http://files.shareholder.com/downloads/INTC/3067768707x0x912364/F8A88EDB-C0F0-4D7C-BA99-CB302142EB77/Earnings_Release_Q3_2016.pdf

The number of employees is reported at the bottom of page 9 of this report. 

It is interesting to note that in spite of the mid-year massive layoff of employees, Intel Corp. reported about 900 fewer employees in Q3 (105,600), relative to Q2 (106,500).

Considering that the Company declared, earlier this year, its intention to reduce its workforce by 16,000 employees, while materializing the layoff of about 6000 in mid-2016, the above numbers indicate that recruiting new employees to replace laid-off workers, never stopped or even was accelerated.

Since most of the laid off employees were older, it seems apparent that Intel Corp. simply purged older employees from its ranks to replace them with younger and cheaper workforce. The charts published by the Oregonian news outlet (available on this web site--see: http://www.pdx-tie.org/2016/08/useful-diagrams-for-explaining-intel.html) clearly indicate that employee age was a major factor in determining who is going to be selected for layoff.

--Dr. Flywheel 

1 comment :

  1. From the Q2 and Q3 2016 earnings releases; I am seeing 112,400 employees in Q1 2016, 106,500 in Q2 2016 (a reduction of 5,900 due to ACT), and 105,600 in Q3 2016 (a further reduction of 900). So 6,800 total since the announcement of ACT. The original announcement (in April 2016) called for a 12,000 employee reduction by mid 2017.

    ReplyDelete

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