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Intel Faces Age Discrimination Allegations Following Layoffs (engadget.com) 262

Intel is under investigation for potential age discrimination in its approach to layoffs initiated in 2016, according to a report. Engadget: The Wall Street Journal has learned that the US Equal Employment Opportunity Commission is investigating claims that Intel's large-scale layoffs discriminated against older employees. In a May 2016 round that cut 2,300 workers, for instance, the median age of those let go was 49 -- seven years older than those who remained. The EEOC hasn't decided whether or not it will file a class-action lawsuit against Intel, but the affected people will be free to pursue civil lawsuits if the regulator doesn't find enough evidence to pursue its own case. The EEOC isn't allowed to confirm or deny investigations. However, an Intel spokesperson categorically denied that age played a role.
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Intel Faces Age Discrimination Allegations Following Layoffs

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  • They weren't old.. (Score:4, Insightful)

    by Arzaboa ( 2804779 ) on Tuesday May 29, 2018 @02:05PM (#56694708)

    ...they just weren't young and vibrant.

    --
    "Wish you were here" -- Pink Floyd

    • by Maxo-Texas ( 864189 ) on Tuesday May 29, 2018 @02:08PM (#56694746)

      And they had higher health care costs.

      We really need to remove health care as an incentive to lay off older people and an anchor on business profits that prevent them from competing with companies in countries where business doesn't pay for health care.

      It's so funny because *everyone* gets old. It's in *everyone's* interest to prevent age discrimination.

      • by LynnwoodRooster ( 966895 ) on Tuesday May 29, 2018 @02:20PM (#56694858) Journal
        All it takes is allowing people to fully deduct the cost of their own healthcare. As it is now, it's a tax benefit for consumers to have healthcare paid for by their employers. Change it so consumers can deduct the cost of health insurance/healthcare and there will be zero reason to stay with the existing approach. And a side benefit is they employee will now be in direct control of the expenditure on their own healthcare, most likely resulting in reduced expenditures on healthcare.
        • Re: (Score:2, Insightful)

          by Nidi62 ( 1525137 )

          All it takes is allowing people to fully deduct the cost of their own healthcare. As it is now, it's a tax benefit for consumers to have healthcare paid for by their employers. Change it so consumers can deduct the cost of health insurance/healthcare and there will be zero reason to stay with the existing approach. And a side benefit is they employee will now be in direct control of the expenditure on their own healthcare, most likely resulting in reduced expenditures on healthcare.

          How about just taking the middlemen out of healthcare? Get rid of the insurance companies and private insurance. Sure, the government might not be as efficient as private companies, but single payer still has to be cheaper when you realize that right now you are paying for the overhead/profit for the insurance companies, profits for the insurance company stockholders, the overhead/profit for local brokers and plan administrators, etc. You have at least 3 layers of people making money off your healthcare

          • How is removing insurance companies and inserting Government going to be cheaper or more efficient? At least now, insurance companies have to offer some level of service, or they lose clients. With single payer - you have, effectively, a single insurer who does not have to answer to anyone.
            • by Nidi62 ( 1525137 )

              How is removing insurance companies and inserting Government going to be cheaper or more efficient? At least now, insurance companies have to offer some level of service, or they lose clients. With single payer - you have, effectively, a single insurer who does not have to answer to anyone.

              Barring the fact government is (or at least should be, except for tax collection) a non-profit entity, you are effectively removing 3 different layers that derive profit off of the money you spend on health insurance premiums before you even see a doctor. Removing those is an automatic cost savings, even if you still have to pay out of pocket like most insurance plans make you do now. As for one single insurer, yes, that would be great. That means that everything is already negotiated out and everyone i

              • Barring the fact government is (or at least should be, except for tax collection) a non-profit entity, you are effectively removing 3 different layers that derive profit off of the money you spend on health insurance premiums before you even see a doctor.

                If that were true, why aren't all govt operations cheap and efficient? 3 levels of profit, done right, is way more effective than a single level of government, done poorly (which is how most implementations go down). Hell, just look at the military comple

                • by sjames ( 1099 )

                  Except that our healthcare costs us several times more than it does in countries with socialized medicine.

                  Meanwhile, try actually hanging out in a business office for a few days. Just watch and listen. Never again will you be able to claim that business is run efficiently with a straight face.

                  Because of multiple insurance companies all with their own huge set of billing procedures, rules, and quirks, medical billing actually requires a 6 month course to absorb the specialized knowledge needed above and beyo

                • There are many, many layers in military contracts, each with healthy markups. Accountability has high costs.

                  Governments are generally limited in a few ways that private industry is not: rate of change, and silos of influence are the main ones I understand. Some times these things are benefits and some times they are not, but healthcare is generally more in the former group.

              • I wonder if you realize the Federal Government already spends about $3600 per year on healthcare for every man, woman, and child in the US [nationalpriorities.org]? Shall we turn over the other 40% of our national spending on healthcare to that entity?
            • by Maxo-Texas ( 864189 ) on Tuesday May 29, 2018 @03:08PM (#56695206)

              Actual hard data shows other countries pay 50% to 33% of our cost and have better adult and infant mortality ratings.

              Our insurance is *great* if you are one of the "winners". It's bad for the other 80%. Insurance companies delayed coverage for a friend of mine until it was too late and she died of a curable form of cancer. They do this. All the time. That's why the ACA was passed in the first place. Insurance companies were literally canceling coverage after people had paid premiums for years as soon as they got sick. People who lost their jobs couldn't get coverage and died.

              We need something that's fair to everyone. You never know when you may not be in the "Winners" group any more. It happens all the time. Chronic illness being a leading reason.

              • Our Federal Government spends about $1.2 trillion a year on healthcare already - they already spend as much as other nations spend, per capita. Yet how many actually get by with just the Federal Government spending? Vanishingly few. We end up buying private insurance (or extended insurance) because that already provided is basically worthless.
                • by Whibla ( 210729 )

                  Just to expand and emphasize on this:

                  Our Federal Government spends about $1.2 trillion a year on healthcare already - they already spend as much as other nations spend, per capita.

                  Population of USA: 325 million. US Fed Spending on health: $1.2 trillion. Spend / Capita = $3392
                  Population of England: 53 million. UK Gov Spending on health (in England): £124 billion* ($165 billion). Spend / Capita = $3113

                  So, to within a few percent, our governments spend similar amounts on healthcare.

                  Yet how many actually get by with just the Federal Government spending? Vanishingly few. We end up buying private insurance (or extended insurance) because that already provided is basically worthless.

                  And yet, other than prescriptions for certain medications, I need pay nothing for medical care. I need no additional insurance to cover injury or illness, I have no

                  • by AmiMoJo ( 196126 )

                    *In fairness the NHS is becoming increasingly cash strapped and, rather tragically, is being incrementally privatised, so it's not all roses in the 'Garden of England'.

                    That's a deliberate policy by the government though, not an inherent problem with social healthcare.

            • by ChatHuant ( 801522 ) on Wednesday May 30, 2018 @12:50AM (#56697398)

              How is removing insurance companies and inserting Government going to be cheaper or more efficient?

              Because insurance companies have exactly the opposite motivation that we want in a health provider. What we want is to maximize health. What they want is to maximize profit. For insurance companies, actually treating people is a *cost*, which they will try to avoid. On the contrary, extracting more money in any kinds of ways is a benefit, and they'll try to maximize it. They have no motivation to reduce the customer's cost - on the contrary, the worse they treat the insured, and the more they bill them, the better.

              The government has no such perverse incentives; moreover, a large single payer system, such as Medicare, could use it's bulk purchasing power to negotiate great reductions in prices (as any reasonable business does). In the USA there are however LAWS forbidding Medicare to negotiate, which is just crazy.

              This is not just idle banter - look at this study [nih.gov], provided by the NIH. Private insurers have an average overhead of 18%, while public insurers (Medicare and Medicaid) have an average overhead of 3.1% (table 1 in the study). As another point of interest, the overhead of the Canadian single payer system is 1.8%. The study concludes that removing the insurance companies overhead would save a staggering 350 billion dollars a year - which would be enough to cover the cost of treating all uninsured people in the USA, and leave enough over to improve everybody's current health care.

               

          • billing / codeing is a big mess in us healthcare!

            Some dockets need to spend a lot of time on billing to just get paid.

            • by murdocj ( 543661 )

              I remember listening to a co-worker argue with the insurance company over the phone. She had been to the doctor for some sort of "well-baby" pregnancy checkup. The office had coded it wrong so insurance denied the claim, even though it was clearly a covered visit. She was asking the insurance person how it should be have been coded, and the insurance person was accusing her of trying to commit "fraud" by getting it coded right so it would be covered. It was absolutely insane... "guess the code to get pa

        • You know... for the bottom 60% that's almost useless to completely useless, right? With a low income that's already maxed the limit on deductions, a deduction is worthless. And even with a deduction, that only lowers the cost of health care by about 15% or less for everyone making $120,000 and less. This leaves a family facing a $12,000 insurance bill and getting a $2000ish deduction.

          Over 20 other countries use single player government health care and their health care costs are half to a third of our co

          • Best way to equalize it is to make everyone pay. You pay $3K for health insurance of your $50K income, and you can cut your AGI to $47K - full deduction. Just like businesses get. Right now as a private individual until you are well over 10%, you don't get to deduct anything.
        • that's nice and all but it's not that big a deal when a stay at the hospital is $20k. You're probably thinking of tax credits, e.g. when the amount paid is given to you as cash. I've heard that suggested in the past and it's silly. It's basically a round about way to do single payer healthcare. We keep all the disadvantages of insurance companies: high cost and substandard care. The 'substandard care' comes from the inevitable caps on the credit.

          The only real fix is a single insurer; e.g. a single payer
          • No, I'm thinking a straight deduction. You make $60K gross income, you spend $10K on insurance/health costs, your gross is adjusted down to $50K. Just like for your employer, every dollar spent on health insurance/healthcare is 100% deductible from their gross income.
        • by mrops ( 927562 )

          How about federal health care. Pay it from taxes, win win. Don't pay for a military, pay for health care.

          Balance in favor of health care a bit.

        • And a side benefit is they employee will now be in direct control of the expenditure on their own healthcare, most likely resulting in reduced expenditures on healthcare

          Unless you are a doctor, you are not sufficiently knowledgeable about what health care you actually need in order to make good decisions that reduce expenses. And this has been demonstrated in study after study.

          A functional "free market" requires an efficient market, and the asymmetry of knowledge guarantees the health care market can not be efficient.

          • I can purchase insurance that works for me, like a high-deductible catastrophic plan. I cover everything up to $10K or so, and everything above that is covered 100%. Works for me, and I used to have that kind of plan until ACA and it was effectively banned. So now I pay about 4X the costs, for really no more use than before. Why should we have one-size-fits-all healthcare (because it certainly isn't insurance - insurance is used when you have a larger expense, like automotive or home insurance - not for
      • into paying for somebody else's healthcare? When you're young you don't need much. Maybe a little pre-natal care. It's not until you're in your 50s that most people really need the stuff. And those folks don't want to pay.

        More importantly, while there are plenty of arguments to be made in favor of single payer healthcare any time it comes up the insurance companies spend half a billion dollars or more shooting it down. I still get people who tell me they don't want it because of "death panels". I ask th
        • by lgw ( 121541 )

          I wish we could get a national referendum. Take out the deep south and the rural parts of Texas and Arizona and you've got over 60% in favor of medicare for all.

          Take out the people who disagree with me and everyone agrees with me!

          As far as "medicare for all", Medicare is underfunded by $27.9 trillion (by GAAP), or about $230k per taxpayer. We can't afford it now - how's it supposed to work financially if we pile more people into it? And remember, you still need (supplemental) health insurance if you have Medicare, as there's a lot it doesn't pay for, and Medicare itself isn't free, so it's not like all the money that currently goes as health insurance premiums co

          • by AmiMoJo ( 196126 )

            Medicare is underfunded because you are being shafted by for-profit insurance companies. A key part of having a social healthcare system is that prices are either fixed at a low level or the state simply runs the hospitals itself.

            By the way, when are you going to fix your signature? It's factually incorrect and this has been pointed out to you a few times already.

  • I had heard they were closing down some factories in the past few years. Could it just be that they had a lot of older line workers?
    How many young people fired does it take to prove this allegation wrong?

  • We can draw no conclusions merely from knowing the median age. The older employees probably probably made more money and received more benefits. Money is certainly part of the calculations for layoffs. There is also a greater chance that they were out-of-date making their cost/benefit ratio lower. Counterbalance that with the fact that companies often prefer to layoff younger workers to reward years of service. So the determination of who to layoff is quite complex, but it certainly involves many facto

    • Good point about pay. Higher paid employees are easier targets when doing layoffs.

      For us, it was hours worked. We let nearly every dev go that was working less than 60 hours a week. Of course, that skewed to a higher average age. Someone complained to the state DoL about that, and when we explained the metric used, we never heard back from them. I assume that meant using hours worked was a acceptable metric even when it appeared to result in age discrimination.

      • by sinij ( 911942 )

        For us, it was hours worked. We let nearly every dev go that was working less than 60 hours a week.

        You are stealing from your employees.

      • We let nearly every dev go that was working less than 60 hours a week

        Basically you kept those who needed more time to finish their tasks. What could possibly go wrong?

      • While cost is always a big focus in layoffs (you're trying to save money!), from a practical perspective I find the larger reason I would skew towards some of the older folks in our organization is that they are far more resistant to changing their ways when business realities dictate we do so. Obviously this doesn't apply to everyone, but as a generality holds true. My organization has done a number of takeovers and integrated their IT departments into ours. More often than not, the older folks (50+) ha
        • by swb ( 14022 ) on Tuesday May 29, 2018 @03:07PM (#56695188)

          Experienced workers are more likely to be resistant to "culture and process change" because they've been down that road before and seldom seen it actually result in meaningful changes. At best its a workable rearrangement of existing process, at worst its a distortion of the process that makes it worse.

          Younger and less experienced workers are more likely to fall for a charismatic sales pitch, not knowing that the changes will probably be a net zero change at best, or believe they have something to gain by attaching themselves to a "change agent" and their agenda.

          These days these process changes seem even worse than in the past because they so often seem to be tied to just generating more data for managers vs. any actual improvement in work product or work process.

      • by mark-t ( 151149 )

        Are you saying that you dismissed *every* employee that did not work at least 60 hours per week, and kept *every* employee that did?

        Because if not, then hours worked was not the only criteria, although that was the only criteria you told the DoL that you used.

        And if that's the case, then it follows that it may be entirely possible that hours worked was not even a criteria at all, but that you would have deliberately lied about it to the DoL knowing that it would skew the results in the direction that a

        • by swb ( 14022 )

          I have to say, I'm more than a little impressed at the brass balls you must have had to do this if that's what you actually did.

          Lying to labor officials about layoff criteria doesn't seem that risky. For the most part, unless there's substantial proof of sexual discrimination (against women) or racial discrimination (against blacks, really) I don't think state labor agencies really have much authority or power.

          For the most part, beefs with employers are outsourced to the legal system. If a lawyer thinks you have a case worth contingency you might get someplace.

  • Maybe Intel is an evil company that likes to cast off older workers, just to make them suffer.

    Or, maybe Intel was merely closing down some older and no-longer-profitable business units from the 1980s that happen to have been staffed with workers that hired on in the 80s.

    Or, maybe Intel was merely flattening their management structure, laying off managers and keeping the engineers, thus disproportionally impacting manager who also happen to be older, on average.

    Or, maybe there was some combination of t

    • Re:Not enough data (Score:5, Informative)

      by Anonymous Coward on Tuesday May 29, 2018 @02:55PM (#56695112)

      Being one of those affected by this action, I have a little insight to this topic. Sure, I also have a little bit of a bias.

      This was not a case of closing a factory, nor of flattening management structures. Intel has gone through those multiple times, and as painful as they were, they were not like what happened in 2015 and 2016. In the recent disputed cases, managers were told from upper management to fire that one and that one and that one, with no choice or input from the direct or 2nd or even 3rd line of management. In my experience, these targeted folks came from many different divisions, and the prevailing similarities were that we were all older white males. Our managers were extremely unhappy that they had to let us go, and if it were merely a cost issue, would love to have traded out for other employees.

      To respond to one of the earlier comments above: most of these positions had absolutely nothing to do with Java or Python, thank you very much.

  • by ErichTheRed ( 39327 ) on Tuesday May 29, 2018 @02:38PM (#56694994)

    The entire tech industry is built on an endless supply of cheap, young fresh grads who are easily convinced that low salaries and grueling work weeks are the norm. As those grads gain experience, they demand more salary and a more flexible life and will reach a point where employers will find a way to get rid of them.

    It's not fair to paint everyone over a certain age as a dinosaur. I've seen many freshly minted MBAs explicitly say they don't want resumes of anyone who "looks over 40." This is due to a widely held stereotype that the only people who understand technology subjects are in their 20s, and the 30s are the time to start planning retirements. Everyone in the first stages of their career deriding older workers should bear in mind that this problem will eventually claim them unless they're very lucky and stay on the cutting edge every day of their lives.

    Losing a job in your 50s in tech usually means you won't be working in the field again, so I'm not surprised that these workers are trying to get an age discrimination settlement. Imagine you're 53 and can't access your retirement accounts until you're 59.5, and can't get Social Security until you're 62. If no one will hire you, you're dead. I've seen this happen to many people since our company tends to skew older.

  • by forkfail ( 228161 ) on Tuesday May 29, 2018 @02:42PM (#56695028)

    Software is viewed as a disposable product with a limited lifespan. Therefore, building it poorly is OK, because it's gonna be replaced in a few years anyway. Therefore, hiring a young person for cheap to build it is fine; it just has to work well enough to ship.

    Except, of course, the above premises are almost never true. That backfill script you wrote for the one-off run to add data? It will morph into a nightly task. That snippet of code where you hard coded a few strings? It will become the primary limiter to your entire pipeline architecture.

    I'd have thought that after all the study and work done over the years that folks would have figured this out, at least to some extent.

    But what baffles me the most is how the software discipline is the only one that truly reviles age and experience. In every other math, logic, and scientific discipline, it is a known that experience almost always means better results, and the ability to teach and mentor those who come after. In this discipline, it is not unusual to be considered over the hill at 30.

    It boggles the mind.

    • It boggles the mind.

      Furthermore, can people actually blame women for not getting into programming? The fact that women stay out of programming or CS (or similar field) doesn't mean there is any kind of bias against them, it means that they're intelligent and smart

      The SJWs don't know what they're talking about.

  • However, an Intel spokesperson categorically denied that age played a role.

    "We didn't discriminate against older employees," said Cody McYoungling, 27.

  • by chubs ( 2470996 ) on Tuesday May 29, 2018 @04:15PM (#56695640)
    I worked at Intel in 2016. I luckily walked away before the big layoff, but I know several people who remained. When they blanket offer everyone over a certain age a lump sum of money in order to "retire early" (the sum wasn't nearly enough to allow someone to retire early, unless they were already planning to retire in the coming months), you really can't claim that age was merely a circumstantial correlation. After the chips fell with who did/didn't accept the "retirement package", THEN they commenced laying off the rest of the workers. Not sure if the EEOC is considering those people to be part of the layoff, or if those numbers only represent the involuntary ones.
    • I worked at Intel in 2016. I luckily walked away before the big layoff

      Explain something to me, what makes you lucky there?

      I considered myself lucky to be part of layoffs. The tax advantages alone are incredible to say nothing of the government mandated payout. My own record was working at a company 1 day before the project got canned and I was made redundant. I have never earned so much for doing so little in so short of a time.

      Do workers not get any protections in layoffs in the USA? No tax benefits? No payouts? No madatory benefits valued and paid? No pension contribution?

  • The millenials claim they can't get jobs while the companies are laying off only the older employees.
  • Folks:

    I was so happy that I was given the buy-out that I danced like a ballerina in the hallways of Intel's Jones Farm Campus as I left and started my retirement to Bellingham, Washington.

    Here is the link to a video re-enactment of my behavior during my last days at Intel's Jones Farm Campus in Hillsboro, Oregon Mark Allyn as a Plastic Wrapped Ballerina Auditioning For The Nutcracker At Intel [youtube.com]

    So happy to dance and sing in front of Slashdot's community!

  • I think you'll find this is Wage not Age discrimination.

    Typically in these huge companies, when they decide to make a round of layoffs there's no analysis done on who is meat and fat in the company (trimming only the fat). The process goes usually....

    Big exec goes.... hmmm I need to cut half a billion from the payroll? Easy !

    Ring ring...

    Exec: hey DBguy (in the payroll office) can you do a quick query for me?

    DBguy: Sure....

    Exec: if you take the highest paying employee in every department excluding top exec

Technology is dominated by those who manage what they do not understand.

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