Thread regarding Intel Corp. layoffs

As some posters have already stated, severance pay is not required in most states. That said, one has to understand what the company is doing with a severance contract. The contract limits the former employees future options. They give up the right to sue the company if discrimination is evident, non compete clauses may be present, etc. It's up to the individual to determine if a severance agreement is worth signing. If one thinks that they may have been unlawfully laid off..don't sign or try to negotiate a better deal.

I am hearing there are packages , but not seen any details yet. Tend to agree that I suspect they won’t be generous … Process is well underway though , I’d expect people to know before earnings.

When you look at previous layoffs they go after the senior people because they cost the most. Intel bean counters only care about the money and are clueless about the impact. When BK was CEO he was able to seriously boost the stock price by firing senior people while retaining less experienced ones. Why ? Because Intel was on top and had no competition so innovation was not needed. The company plan was to milk the existing product for as long as possible while reducing expenses. It worked until it didn't. When competition from Apple M1, AMD Ryzen, and TSMC process started the company had no way to react and you see the results today.

BTW, private equity firms have been doing the same dirty trick for a while. Do an LBO of a company with a leading product line, fire all the expensive employees and outsource with the cheapest possible labor. The leading product line will have many years of momentum but the labor costs will be seen within a quarter. The company will see a massive boost in earnings which will boost the company's valuation. Private equity company can "flip" the company for an easy profit. Unfortunately, some years later, the product line will mature and need updating but the experienced people will be gone. It's not the private equity company's problem anymore just as BK has already booked his profits.

You will be lucky to get 12 weeks (1 for each year) + accrued vacation/sabbatical.

There is no legal requirement under California law that employers provide severance pay to an employee upon termination of employment. The execs and HR know this.

Why are they firing the experienced folks? There are a lot of new hires who should be fired.

@1awe+1jbAfMxb.. NOPE, my post is for now and real, you can take my words to the bank .. I just made reference of ACT-2015 as far as the week's calculation package since this time will be a 1:1 ratio rather than a progressive table like it was back in 2015..

that was in 2015 2016. i would not assume this will be same

Severance packages calculations will vary depending on few factors but there will be packages. In the case of Intel Cali and Colorado employees, you will be able to get up to 8 weeks vacations pay if you have not used them, any available sabbatical you may have (4 or 8 weeks), 2 months of the basic severance package, plus 1 week (used to be way higher back in ACT-2015) for every year of service. You will also get 1 full year of Cobra. Plus, if you are eligible for retirement (rule 55,75, 65) you will get 1 year of accelerated vested options. Last but not least, if you meet any of the retirement’s milestones (55,75,65) you will get most part (prorated to Oct 22) of the APB since we are already at Q4 and all of the perks that comes with the retirement program. BTW you could apply for the voluntary retiree community work program and Intel will pay you 25K for one year doing volunteer work but you need to apply before you leave Intel..

So, say you have been at Intel 25 years you work in any CA or CO sites and you have met any retirement milestones, you could get a package FAR above 6 months (close to a year) so payout above 6 months is not exclusive for VP’s or any other higher-level management\grades. The HR formula will apply for everyone. Yes, there will be other “enhance” packages that will go above and beyond this but the basic severance formula will apply for everyone impacted …

Get the bag and run.

Obvious bait is obvious.

I think OP is counting accrued vacation (max 4weeks/yr *2 yrs), and sabbatical of 8weeks. And 28 weeks for each year of service. Total 44 weeks.

Otherwise doesn't make sense.

If I was offered 44 weeks I would volunteer in a heart beat. So would many other people on the sinking ship. If this is real you are very fortunate.

OP seems to be targeted PE/SPE with uncommon situation for high payoff.

Ya right. There is no package this time. Intel is broke. They can't even afford to pay dividends. Probably 2 months max plus 18 months cobra.

BK handed out 12. month severance package in 2016.

Did they start lay offs already?

Seems too much. Only VPs and above get > 6 months.

What grade level?