Earlier quoted context omitted.
Unless the bosses at Intel just hate older people (unlikely as they are almost all older people) they are doing this for economic reasons alone. I say this as someone already over-the-hill age wise that we really need to find a way to allow people as they age to be able to accept a lower wage that matches their productivity. Far fewer old people would be made redundant if they got a wage cut every year instead of a r…
First, productivity (as in widgets per hour) is a bad measure for knowledge worker value. It's famously hard to measure the output of teams of engineers over long periods of time, let alone the recent output of a single engineer. Second, it is just taken as a given here that knowledge workers become less productive over time. Why are engineers downhill starting in middle age but not doctors, lawyers, professors, and…
Just because it is hard to measure productivity doesn’t mean it can’t be measured. Most employers have a reasonable idea of the price/productivity of their employees.
What we have done by not allowing the cutting of wages with age and declining productivity is introduce a lottery event. Some employees as they age “win” by getting pay rises every year until the retire, while other are thrown on the scrap heap early. Collectively the decline in productivity is reflected in average wages, but the human cost is very unevenly distributed.
People in every profession decline as they age. You certainly don’t want an old surgeon operating on you. Job productivity is a story of rapid rise until a certain point, a plateau, and then decline; slow at first and then faster. I wish it was otherwise as I am now past the plateau :(