The iCDG management still need the expertise of the Germans to make xmm7660 competitive.
26 replies (most recent on top)
@2sby - if you need reminding the Munich site has delivered nothing. Infineon bought it's 2G, 3G and 4G solution. That's why the modem is a bloody mess. It was Indians that came to the rescue, delivered 7260, achieved the most prestigious IAA award you can receive at Intel and kept Intel mobile in the game. All you have in Germany is politicians.
Re: From a business point of view it makes perfect sense. I suspect Intel would salivate at a chance to get into NK if that regime ever fell and they could get there on the Cheap
I do agree most American corp would do business with NK for cheap labour if the embargo is lifted.
Yes, once trained the Indian sites would also deliver with their longer working hours, relatively cheaper labour, hierarchichal work culture ( ideal slave labour), great place for doing testing, verification ) ).
The flipside being, for the first time some Indian states want labour unions for the IT sector, TN had an act passed n soon the other states would follow, so forced long hours might no longer be taken for granted, ... predictable deliveries would become even more difficult though the long hours & forced work culture balances to an extent, unstable political climate with the rise of Hindu fanatics, ( if you go to India for technology transfer & are suspected of eating beef you could be lynched to death)..., innovation would die, attrition rates are terrible people need to be trained again n again.
These are the ground realities which the mgmt would have to deal with n they would be glad to have new silly issues to deal with to keep their jobs n deliver nothing. Eg., the person who put her badge on the table for delivering LTE SoC and after 3 years delivered nothing n put the badge back in when sh-- hit the fan :) ).
The question for BK ( or Murthy who would soon replace BK) is, do you need predictable, consistent deliveries, with advances in technology n a focus on the future as a technological firm or just a means to pull wool over the shareholder/boards eyes and initiate layoffs, site closures that in fact put Intel' future at a disadvantage. Hey BK you can use the textile industry model of doing business in Bngladesh which was great for shareholders ... :)
@1tnn: great laws! They're useless when the politicians are paid off, of course.
"There is no German law which stops a loss making company from closing"
while that is true, they do have to either place the employee somewhere else or pay a hefty, hefty severance. About 15 years ago, i worked for a company that went under in Europe (and eventually everywhere). We tried to get rid of the sole employee there (Sales) who happened to be pregnant and a mother (added complexity). We were told we could not just let her go. It took five years of work council, legal, and other reviews (all while she was receiving full pay) to get her out, and only with a sizable final payout. When I left Intel, I worried that I, the last support for GER in my team, would now be gone. One of my colleagues said not to worry, as soon there would be no GER component of my old job to support anyway. Also when ACT happened, Intel was honest in saying that in some geos, the whole ACT thing would not be completed until 2017, optimistically. Too many local labor laws. Objectively, that's why global corporations prefer regions with no job protection and low wages, and why Intel shuts down in sites as either the standard of living/wages/protections increase. From a business point of view it makes perfect sense. I suspect Intel would salivate at a chance to get into NK if that regime ever fell and they could get there on the cheap. Of course, at this point I doubt they could justify expanding into any new region or building new factories anywhere.
1psk lazy english
Lazy munik very bad. To scared to come San Diego. Indian engineer better than germ.
@1tnn I bet Munich has been full every day getting ready for the iPhone launch. Nobody took 2+ weeks vacation in August?
@IXglhhl-1pyk: Coupla observations..Intel gmbh does not post yearly financials. Cannot be accounted per your reasoning. Yes 2500 employees across DE is a small number. The law does not change based on number of people impacted.
About work culture... longer hours cos of inefficiency, new to technology, long coffee breaks, staying late to avoid the traffic, gossip n politics vs efficient working German machine ... Ive been based in all 4 sites that you have mentioned trust me I know what am talking about.
Sadly your message coming regarding days being numbered could be true...not for the reasons that you have mentioned. The real question however is, what is really required for Intel to succeed. An ACT poorly thought out & botched up in execution or an honest introspection about what went wrong, who is responsible and how to correct it and who is the best person to head the unit ...
Really you guys are full of sh--. Look at Intel in France. Closed nearly everything! The government there is more interventionist than in Germany and they did nothing!
Intel mobile communications is a massive loss making business. There is no profit you imbeciles. Closing the German operations would save Intel mobile approximately $400m a year which will cut the losses significantly.
There is no German law which stops a loss making company from closing and Intel mobile communications gmbh is losing lots of money. They will not fine a parent company. Intel in Germany is a few thousand people not really significant for the German government to step in.
Just face it guys the veil of job security is pierced. The works council is impotent. The German operations are inefficient compared to India, China and US. Your days are numbered. I take no pleasure in this news but facts are facts.
Is this just a rumor or is it for real? I'm still with ICDG and I haven't heard or read anything about this in the US.
Re:
Plus there is no minimum legal requirement in Germany for severance.
That is true, but govt penalties to the state and not the employee would be high. Assumimg 100 are forced out using dirty tactics, there would be a 100 court orders and this could drag anywhere between 3 and 6 months. A 47 year old colleague cos of the recent stress level increase died of cardiac arrest, any similar events would cause the families to move against Intel in a court of law which would then decide the compensation.
It would be easier for Intel to pay everyone around a million Euros as compensation and then attempt its planned US-India only operations. Also Intel should attempt to place all the affected employees in a new firm by inviting potential employers onsite.
the govt would impose heavy penalties, when a company that is making 62% profit attempts a shady layoff. Especially, when it needs to recruit/expand for automotive roles but wants to force people out first cos' BK thought it should be so anr hire afresh. The absurdity of the situation would be called out in a court of law. This is not the US where corporates managers get away with anything from embezzling, to s--ual harassment to stupid decisions. All corporates need to adhere to the rule of law )) next time.
This entire unpleasant episode has become extremely distasteful & distressing for the whole site, it is just a matter of time before the media steps in.
All is clear that Indians do no value German expertise. Just work moremore hours and weekends. That's all that matters.
" When you have a leader who says anyone questioning her should leave her organization rather than take responsibility for faillure, the government certainly has the onus to step in. Lets hope the German courts sub-peonas the leadership in the US. "
Aicha is a failed manager and should have been perp walked out long time ago.
Not sure what the German govt. will be able to do here, hopefully there is something they can do.
"This is a classic example of how a "quota" system rather than meritocracy destroys a great firm. Corporates do have a social responsibilty but using skin color & race & gender as performance indicators rather than merit, results in the current Intel Mobile situation. Let us hope Dr. Murthy brings back meritocracy in this system that has been corrupted with sycophancy, brown nosing & incompetency."
You are wrong here in your last statement. Murthy is overseeing the layoffs and holding Aicha responsible to meet her deadcount quota. Nothing will change with Murthy at the helm, things will continue getting progressively worse in terms of corruption and incompetency as management re-trenches into their silos to try to avoid the next round of layoffs.
The lazy Germans are on vacation until September we'll have to wait until then for their response. I'm sure they have been told works council and government will protect them even though they see sites close in Germany every year lol lol lol
Intel excited France which imposes higher penalties.
Plus there is no minimum legal requirement in Germany for severance.
consequences being : The German govt would impose heavy penalties on Intel, Average compensation to each employee would probably be 2N or significantly higher. Not sure how long the German Auto manufacturers would like to be associated with Intel...
Forced layoffs to meet a 'bodycount' defined by the 'leadership' with no business sense ( rehiring after the layoffs) might be accepted in the American context ( which is why you have Lehman brothers, Enron and other horror stories). A responsible govt like the German govt holds the management responsible for decisions, which every management ought to be.
When you have a leader who says anyone questioning her should leave her organization rather than take responsibility for faillure, the government certainly has the onus to step in. Lets hope the German courts sub-peonas the leadership in the US.
This is a classic example of how a "quota" system rather than meritocracy destroys a great firm. Corporates do have a social responsibilty but using skin color & race & gender as performance indicators rather than merit, results in the current Intel Mobile situation. Let us hope Dr. Murthy brings back meritocracy in this system that has been corrupted with sycophancy, brown nosing & incompetency.
re: Murthy for sure must have known he was being brought in to be the hatchet man and (maybe) get a spun-off semi-company of his own at best.
Agreed. He had to have known because it was certainly my first thought when I heard he was being hired back in November.
I've been saying for awhile that if you want to apply performance management consistently, start with BK. The stock price is up a bit only because of HC reductions, stock buybacks, and smoke and mirrors with IoT etc. Other than that, it should have been 3 years of IRs (OK, maybe a SSL 5 instead). I'm thinking BK and Murthy are now in it for short term gain only. Murthy for sure must have known he was being brought in to be the hatchet man and (maybe) get a spun-off semi-company of his own at best.
I've been saying for awhile that if you want to apply performance management consistently, start with BK. The stock price is up a bit only because of HC reductions, stock buybacks, and smoke and mirrors with IoT etc. Other than that, it should have been 3 years of IRs (OK, maybe a SSL 5 instead). I'm thinking BK and Murthy are now in it for short term gain only. Murthy for sure must have known he was being brought in to be the hatchet man and (maybe) get a spun-off semi-company of his own at best.
If things are still in Germany like I remember them, Intel will have to pay a pretty sizable severance to everyone. It is virtually impossible in Germany to just tell an employee they've been let go.
They'd never get away with this behavior in the states. Germans are like little children believing what management tell them about job security. Their works council's are impotent. They will walk off the cliff like lemmings.
Aicha's is a terrible manager and really has no business being in this position. Just a diversity puppet.
This group did the same with a small site in France (Sophia Antipolis). These guys worked like crazy to deliver 7360 for Apple. Before the ink had even dried on the purchase order Aicha fired them.
Wow what a company, get what they want from you and kick you to the curb just like the old folks who aren't progressing. I think BK is next after all he has been CEO for three years now and hasn't gotten any higher.
The management are consolidating all fw and hw expertise outside of Europe. In addition unofficially all German sites are banned from working on 5G. Aicha plan is to tie it up then cut the "cancer"off.