231–240 of 293 posts
"All employees below Principal Engineer, grades 7 to 11, will get a 5% cut, 10% cuts will be instituted for VPs, and the executive leadership team will take a 15% cut, with Pat Gelsinger taking a 25% cut. " So the OP would rather have Intel fire thousands of employees?
If I were an Intel employee I would never accept a pay cut "justified" by the company's willingness to pay dividends. Investors get dividends when the management creates a reasonable amount of profits, not when employees have to waive their dues to do investors a favor.
It's a textbook example of how owners of capital can extract economic rent from wage workers they hire to utilize that capital to produce something valuable. The whole point of any for-profit business that is not worker-owned is to "do investors a favor" with the money obtained by paying workers less than market value of the goods they produce.
Have you ever owned a business? If employees got paid the value they produce, why would any business bother to exist?
If you want to get paid the value you produce: start a co-op; join a co-op; start contracting; or become a founder. Stop whinging, and do something about it. So many employees choose to work for a business - it is a transaction where they get paid and the business makes money, and both are usually better off for it.
I too dislike seeing employees get taken advantage of, but “fixing” capitalism is not trivial.
I know a lot of Intel employees. I've been asking them if they have been worried based on stories of layoffs, but they have all been upbeat about their jobs. None of them seem to have seen this coming.
Earlier quoted context omitted.
It's a textbook example of how owners of capital can extract economic rent from wage workers they hire to utilize that capital to produce something valuable. The whole point of any for-profit business that is not worker-owned is to "do investors a favor" with the money obtained by paying workers less than market value of the goods they produce.
> paying workers less than market value of the goods they produce Have you ever owned a business? If employees got paid the value they produce, why would any business bother to exist? If you want to get paid the value you produce: start a co-op; join a co-op; start contracting; or become a founder. Stop whinging, and do something about it. So many employees choose to work for a business - it is a transaction where th…
You can get paid in equity… and be 20-80% down on TC this year depending on where you work.
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Studies have shown (take this with a grain of salt because I heard this from a podcast), that dividend stocks and non-dividend stocks have roughly equal returns in the end, with dividend stocks faring slightly worse. This is because dividend stocks tend to appreciate less. So taking $X in dividends every six months ends up being the same as selling $X of your portfolio every six months in the end.
Except that there are often different tax rates between capital gains and dividends. Even if there weren't tax rate differences, reinvesting dividends effectively compounds the tax rate annually, whereas the capital gains tax is a simple rate the year you realize the gain. Though, in a tax-free retirement account, it's moot.
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Yep. And Amazon has gone as far as designing their own data center chip because Intel was selling a lackluster product for the price.
A lot of server workloads also aren't about maximizing flops/Watt or iops/Watt, but rather setting up DMA between the disk controller and the network card and having a low idle power, to get the most network throughput per Watt. A lot of the high-end computation is also about handing off data to the GPU and having a low idle power. It took Intel way too long to get the power consumption on the Atom processors down (n…
Uh, probably fortunately. Softbank bought ARM for $32b 7 years ago, and fat chance it's worth that inflation-adjusted now.
Even weirder that last year Intel trebled the stock bonus, added a high performer profit bonus adder, and increased base pay by a lot. What a strange about face. What is Pat doing?
I had high hopes for Pat, but I think the institutional investors have been getting to him.
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I have heard about companies doing this in times of economic downturns to prevent layoffs. If that was the cause and it was communicated as such and temporary I'd be willing. Example: https://www.independent.co.uk/news/business/news/toyota-staf...
In Germany this is known as "Kurzarbeit" (literal translation: short work). The company reduces the work hours of employees and the pay gets cut proportionally. The cut hours will be paid by the state at a rate of 60% (67% for workers with children, the rate is the same as unemployment). So if a worker's hours get cut by 50%, they still get paid 80-83.5% of their wage. The company can choose to get the employees' pay…
I admit that it's been heavily misused during Corona though, as every large corporation wanted to legally steal a little money from the state.
Earlier quoted context omitted.
I have heard about companies doing this in times of economic downturns to prevent layoffs. If that was the cause and it was communicated as such and temporary I'd be willing. Example: https://www.independent.co.uk/news/business/news/toyota-staf...
In Germany this is known as "Kurzarbeit" (literal translation: short work). The company reduces the work hours of employees and the pay gets cut proportionally. The cut hours will be paid by the state at a rate of 60% (67% for workers with children, the rate is the same as unemployment). So if a worker's hours get cut by 50%, they still get paid 80-83.5% of their wage. The company can choose to get the employees' pay…