So they got all that money from Uncle Sam’s CHIPS Act only to lay off 10,000 employees and make themselves “lean”. Govt funded unemployment.
I work in the industry and my understanding of the chips act is certain goals must be met in order to receive money. Something like in order to get this 50 million, you must buy 100 million of new equipment and facilities improvement. In order to get this 25 million you must have 50 million worth of new jobs. These requirements were also spread out over years so you couldn’t artificially inflate your work force or sell off equipment.
Not saying Intel doesn’t suck, but I doubt they are getting chips act money now. Or they will have to have a big turn around in the next few years to do so. They certainly aren’t getting a free 8 billion.
These layoffs will only be for a quarter or two. Just enough for the c-levels to unlock their full bonuses.
And create a glut in their labour market niche, which will take many years before the wages recover to what they were. In the current 20 year permanent labour shortage scenario, this is the way to prevent wages from increasing. Sure these demand shocks will create issues by they’re making the bet the lower overall expenses for wages will make it all worth it. This is them leveraging the imbalance of power been employer and employee
If only there were some tried and tested method for the working class to join together and create a power block equal to the company in order to negotiate better pay and conditions and avoid these outrageous tactics. Pity
