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NFT: Qualcomm Lays Off 4,500 Workers While Demanding More H-1bs

buford : 7/31/2015 9:24 am
Quote:
Another tech giant that says it must import foreign workers because there aren’t enough skilled American workers in the industry is laying off thousands of workers.

Qualcomm — a major producer of smartphone chips — announced last week it’s eliminating 15 percent of its workforce or about 4,500 employees, just weeks after fellow tech giant Microsoft announced a massive round of layoffs.

Both companies are top beneficiaries of the H-1b visa program, which backers say allows companies to temporarily hire foreign workers for jobs they can’t find qualified Americans workers to fill. Critics contend the program is really used to cut costs.

Microsoft and Qualcomm were in the top 15 users of H-1b visas in Fiscal Year 2013, according to U.S. Citizenship and Immigration Services data obtained by Computer World. They’re part of a major tech lobbying effort to increase the cap on these temporary workers, on the grounds there is a shortage of Americans with science, technology, engineering and math degrees.


This goes back to a discussion we had a few weeks ago.
Link - ( New Window )
Shitty reportiing  
ron mexico : 7/31/2015 9:32 am : link
They don't state how many H1Bs are being laid off in this move and don't provide any evidence they are currently looking to hire more H1Bs, they just state that they were one of the largest users back in 2013

There may be an issue here, but the facts as presented in the article don't support it

There is an issue, a huge issue.  
buford : 7/31/2015 9:43 am : link
Talk to anyone in the tech field. I happen to know people that work at Qualcomm and the people being laid off are not the H1B workers, it is long time workers who obviously make more money.

And this is being repeated in firms all over the country. The HIB visa program is being abused at the expense of American jobs.
On A Personal Level  
Trainmaster : 7/31/2015 9:51 am : link
one solution is to work for a US company that deals with classified or even Export Controlled / ITAR data. No "foreign persons" are allowed to work with that data without an export license from the State Dept.

Overall, yes, it's outrageous that in high tech fields, the US is "exporting jobs" to foreigner working in the US.
Triple whammy  
WideRight : 7/31/2015 9:52 am : link
Revenue, net and margins all down.

Have to adjust staff. Life goes on.
It's a disgrace, and our politicians are right there  
jcn56 : 7/31/2015 10:08 am : link
enabling it. You won't hear a peep about it though, just like the whole salary fixing issue in Silicon Valley went away with nobody noticing.
Agree with Buford.  
Watson : 7/31/2015 10:23 am : link
Tech firms laying off American workers while lobbying for more H-1b visas.

Tech firms claim not enough US qualified workers but it's also known individuals getting these visas will often work for less.
Isnt there a substantial risk  
Deej : 7/31/2015 10:33 am : link
that if you dont allow the H1Bs that eventually the development jobs are going to move overseas? If you want to hire a cheaper 50 Asian workers to code and you cant do it physically in the US, are you necessarily going to hire more expensive US citizens? Or might you send a manager over to India, China, etc. to supervise 50 workers in that country?

There is a real benefit to having those jobs performed in America. These people pay taxes. They rent homes. They eat at restaurants and shop at stores. And there's also a real benefit to not accelerating the departure of high tech jobs to as-yet unbuilt facilities in Asia.
RE: Isnt there a substantial risk  
jcn56 : 7/31/2015 10:36 am : link
In comment 12395702 Deej said:
Quote:
that if you dont allow the H1Bs that eventually the development jobs are going to move overseas? If you want to hire a cheaper 50 Asian workers to code and you cant do it physically in the US, are you necessarily going to hire more expensive US citizens? Or might you send a manager over to India, China, etc. to supervise 50 workers in that country?

There is a real benefit to having those jobs performed in America. These people pay taxes. They rent homes. They eat at restaurants and shop at stores. And there's also a real benefit to not accelerating the departure of high tech jobs to as-yet unbuilt facilities in Asia.


No, there isn't. These companies already outsource to these areas - they find it more cost effective to manage these resources on shore, which is why they're basically building on-shore 'offshore' centers by importing workers from these areas and putting them into US geographic locations that are relatively low cost.

Although it's better than losing the job offshore entirely, the fact remains that it's dishonest. The 'let's let in H1B's because we have no skilled workers to fill these jobs' is bullshit. We have the skilled workers, these companies are just unwilling to pay the wages required to hire them.
I believe the reverse argument is that many of these visas  
Watson : 7/31/2015 10:38 am : link

are used to hire promising foreign students recently graduated from US universities. Keep the brains here, we educated them. Keeps US tech firms vibrant and competitive, thereby creating more jobs for US citizens.
Many times the HIB Visa workers are treated like  
buford : 7/31/2015 10:43 am : link
indentured servants. The employer keeps their Visa, not the worker. There are some that are housed in dormitory like conditions and aren't really contributing to the economy.

If the H1B visa program was used as it was intended, keeping students who were schooled here to work here, then that would be a benefit. As it is being used, or abused, it is just another job drain.

If you were a kid going to school, why would you put yourself through a STEM program just to have your wages stagnated or your job possibly outsources to one of these H1b Visa workers?
RE: I believe the reverse argument is that many of these visas  
jcn56 : 7/31/2015 10:44 am : link
In comment 12395718 Watson said:
Quote:

are used to hire promising foreign students recently graduated from US universities. Keep the brains here, we educated them. Keeps US tech firms vibrant and competitive, thereby creating more jobs for US citizens.


No, most of these folks have studied abroad and are hired dirt cheap. If anything, extending visas to people who were here on student visas would accomplish what you're looking for.
Maybe they're smarter?  
Bill L : 7/31/2015 10:56 am : link
.
Racist.  
buford : 7/31/2015 10:59 am : link
.
Sorry  
Bill L : 7/31/2015 11:03 am : link
I should have said "intellectually able"
RE: RE: I believe the reverse argument is that many of these visas  
Watson : 7/31/2015 11:04 am : link
In comment 12395740 jcn56 said:
Quote:
In comment 12395718 Watson said:


Quote:



are used to hire promising foreign students recently graduated from US universities. Keep the brains here, we educated them. Keeps US tech firms vibrant and competitive, thereby creating more jobs for US citizens.



No, most of these folks have studied abroad and are hired dirt cheap. If anything, extending visas to people who were here on student visas would accomplish what you're looking for.


Was just giving the tech company argument. It would make sense to try and keep exceptional students just recently graduated.

It use to be (at least decades ago) that employers had to prove no US citizens qualified. Is this now just a rubber stamp type process?
One point, one question  
njm : 7/31/2015 11:10 am : link
First, wouldn't the passage of the "Staple Act", a reform of immigration law that would provide a green card to any foreign student upon receipt of a masters or PHD in a STEM subject from a US university solve the one issue? It does seem ridiculous to me that we educate these students here and force them to leave the country after they become qualified to make a valuable contribution and want to stay.

Second. Could anyone give me an idea of what the job market will be like for the 4,500 who are laid off?
Not qualified, but applied.  
jcn56 : 7/31/2015 11:10 am : link
So, you list a job at a ridiculously low salary, and when nobody applies you say 'see, no Americans were capable of doing this job'.

It's a sham, and if tech workers had any kind of industry leadership, professional association, what have you - you'd see a lot less of it.
RE: Not qualified, but applied.  
Watson : 7/31/2015 11:30 am : link
In comment 12395822 jcn56 said:
Quote:
So, you list a job at a ridiculously low salary, and when nobody applies you say 'see, no Americans were capable of doing this job'.

It's a sham, and if tech workers had any kind of industry leadership, professional association, what have you - you'd see a lot less of it.


It would seem than that the problem is in the process. It shouldn't be all that difficult to insure the job was listed at the actual prevailing rate.
RE: One point, one question  
buford : 7/31/2015 11:31 am : link
In comment 12395820 njm said:
Quote:
First, wouldn't the passage of the "Staple Act", a reform of immigration law that would provide a green card to any foreign student upon receipt of a masters or PHD in a STEM subject from a US university solve the one issue? It does seem ridiculous to me that we educate these students here and force them to leave the country after they become qualified to make a valuable contribution and want to stay.

Second. Could anyone give me an idea of what the job market will be like for the 4,500 who are laid off?


People I know in the tech field have been out of work for months and up to 2 years before finding a new position. Of course that all depends on your location and experience. But the job market is not great for anyone.
Why exactly is this outrageous?  
RB^2 : 7/31/2015 11:52 am : link
Do immigrants somehow count less as human beings than Americans?
...  
BrettNYG10 : 7/31/2015 12:06 pm : link
I haven't been able to find anything that details where the cuts are coming from. They can very well be cutting jobs in back-office roles while continuing to grow engineers/etc.

They've also been under pressure by an activist investor (who totally sucks, by the way) to cut costs and streamline operations.

Large, successful companies often bloat the cost structure during the growth phase and subsequently must cut them as their industry and business matures.

QCOM's status as a top 15 user of H-1b's makes sense given their large size - they're probably one of the ten biggest tech companies ranked by market cap.
RE: Why exactly is this outrageous?  
buford : 7/31/2015 12:14 pm : link
In comment 12395958 RB^2 said:
Quote:
Do immigrants somehow count less as human beings than Americans?


It's outrageous because companies are abusing the H1B Visa program to bring in low wage, low skilled (comparatively) workers to replace Americans. That is specifically not allowed in the law.
Buford  
njm : 7/31/2015 12:18 pm : link
One of the problems with skilled laid off workers back in 2008-9 finding new work was their reluctance to move due to the fact that many had homes that were under water due to the housing bust. To what degree is the delay in finding new work related to relocation anxiety and reluctance of North Easterners and Californians to move to a state like Texas?
RE: One point, one question  
Watson : 7/31/2015 12:47 pm : link
In comment 12395820 njm said:
Quote:
First, wouldn't the passage of the "Staple Act", a reform of immigration law that would provide a green card to any foreign student upon receipt of a masters or PHD in a STEM subject from a US university solve the one issue? It does seem ridiculous to me that we educate these students here and force them to leave the country after they become qualified to make a valuable contribution and want to stay.

Second. Could anyone give me an idea of what the job market will be like for the 4,500 who are laid off?


Providing green card to students graduating with an advanced degree in a STEM field, sounds like a great idea. However, it could have unintended consequences, if it's easy for them to stay.

It would make sense for these foreign students to take a lower salary now just to get the experience of working in a US Corp. environment. Am aware of several students sent by their parents to attend private US high schools and continue with US college, not because they intend for their children to stay here. Rather to learn American culture, they are much more valuable to employers when they return home.

As a nation, we are trying to get more students to get degrees in STEM fields. If they may end up facing a suppressed job market upon graduation, this isn't going to help. These kids are bright, they can do many other things. You already see some students, not seeking a job in their field or graduate school. They are getting jobs in the Financial Sector where they can make alot more money.
I agree that there's an issue here with the way some companies  
BeerFridge : 7/31/2015 12:51 pm : link
use this type of visa. The problem is that you can cause a completely different kind of problem for companies and folks trying to get a legitimate h1B visa. there's an excellent chance to screw it up for everyone while trying to protect american jobs.
njm, I'm not sure  
buford : 7/31/2015 12:53 pm : link
but again, would you move your entire family and incur all the costs involved with that when you know you could face the same fate a year or two later? My husband and I moved down to Atlanta for job and then 2 years later they moved the whole department to Omaha! I was actually offered a position, but I turned it down. This was in 2002 and yes, we would have lost big time on our home if we could sell it at all.

I know my brother, who was displaced by his company hiring H1B visas was willing to relocate, he's single with no kids, and he just got a job now 2 years later.

You hear all these stories about how the middle class is disappearing, well this is why.
RE: RE: One point, one question  
njm : 7/31/2015 12:59 pm : link
In comment 12396123 Watson said:
Quote:
In comment 12395820 njm said:


Quote:


First, wouldn't the passage of the "Staple Act", a reform of immigration law that would provide a green card to any foreign student upon receipt of a masters or PHD in a STEM subject from a US university solve the one issue? It does seem ridiculous to me that we educate these students here and force them to leave the country after they become qualified to make a valuable contribution and want to stay.

Second. Could anyone give me an idea of what the job market will be like for the 4,500 who are laid off?



Providing green card to students graduating with an advanced degree in a STEM field, sounds like a great idea. However, it could have unintended consequences, if it's easy for them to stay.

But one of the unintended consequences is that they form startups that create jobs in the US. Silicon Valley surely shows that's possible. So it works both ways

It would make sense for these foreign students to take a lower salary now just to get the experience of working in a US Corp. environment. Am aware of several students sent by their parents to attend private US high schools and continue with US college, not because they intend for their children to stay here. Rather to learn American culture, they are much more valuable to employers when they return home.

The kids sent by their parents to US prep schools (and with the possible exception of the Chinese their parents are paying full freight) simply won't take the green card. How's that different than the current situation? And if they stay for a few years and leave it opens up an entry level position for another US grad.

As a nation, we are trying to get more students to get degrees in STEM fields. If they may end up facing a suppressed job market upon graduation, this isn't going to help.

Unless colleges create more slots in STEM departments it really won't cause depression in the job market, though other factors could cause it

These kids are bright, they can do many other things. You already see some students, not seeking a job in their field or graduate school. They are getting jobs in the Financial Sector where they can make alot more money.
RE: RE: RE: One point, one question  
Watson : 7/31/2015 1:43 pm : link
In comment 12396158 njm said:
Quote:
In comment 12396123 Watson said:


Quote:


In comment 12395820 njm said:


Quote:


First, wouldn't the passage of the "Staple Act", a reform of immigration law that would provide a green card to any foreign student upon receipt of a masters or PHD in a STEM subject from a US university solve the one issue? It does seem ridiculous to me that we educate these students here and force them to leave the country after they become qualified to make a valuable contribution and want to stay.

Second. Could anyone give me an idea of what the job market will be like for the 4,500 who are laid off?



Providing green card to students graduating with an advanced degree in a STEM field, sounds like a great idea. However, it could have unintended consequences, if it's easy for them to stay.

But one of the unintended consequences is that they form startups that create jobs in the US. Silicon Valley surely shows that's possible. So it works both ways

It would make sense for these foreign students to take a lower salary now just to get the experience of working in a US Corp. environment. Am aware of several students sent by their parents to attend private US high schools and continue with US college, not because they intend for their children to stay here. Rather to learn American culture, they are much more valuable to employers when they return home.

The kids sent by their parents to US prep schools (and with the possible exception of the Chinese their parents are paying full freight) simply won't take the green card. How's that different than the current situation? And if they stay for a few years and leave it opens up an entry level position for another US grad.

As a nation, we are trying to get more students to get degrees in STEM fields. If they may end up facing a suppressed job market upon graduation, this isn't going to help.

Unless colleges create more slots in STEM departments it really won't cause depression in the job market, though other factors could cause it

These kids are bright, they can do many other things. You already see some students, not seeking a job in their field or graduate school. They are getting jobs in the Financial Sector where they can make alot more money.



njm, we really don't disagree. The Staples Act in theory is a great idea particularly if its considers only those with a PHD. You mentioned master's as well. My concern is that it may discourage US students to pursue a STEM field; to start lower salaries and greater competition in job market. As indicated in my last paragraph we are already seeing some of this.
I've had 4 engineers  
Joey in VA : 7/31/2015 2:54 pm : link
In the past 4 years and only one was an American citizen and he was downright awful. All of the guys had H1Bs and it was a big issue getting them hired with the Top Secret facility clearance we hold. They had to work in a separate office for one, and we were paying to host the visa which is a ridiculous cost in and of itself.

In my field, the RF Engineers are largely foreign, I've found a few Americans with the expertise but all of them, to a man are demanding outrageous salaries because of all of their experience. I finally settled on a new guy, he's from India with an EE and MBA and he's the best one I have hired. Each time I've had to find one, an overwhelming number are foreign and every single American is asking for the moon and I just won't pay it.

If I can get someone younger and hungrier for half of what I'd pay some older guy who feels entitled to things, why on earth would I pick the American?
RE: I've had 4 engineers  
schabadoo : 7/31/2015 2:59 pm : link
In comment 12396519 Joey in VA said:
Quote:
In the past 4 years and only one was an American citizen and he was downright awful. All of the guys had H1Bs and it was a big issue getting them hired with the Top Secret facility clearance we hold. They had to work in a separate office for one, and we were paying to host the visa which is a ridiculous cost in and of itself.

In my field, the RF Engineers are largely foreign, I've found a few Americans with the expertise but all of them, to a man are demanding outrageous salaries because of all of their experience. I finally settled on a new guy, he's from India with an EE and MBA and he's the best one I have hired. Each time I've had to find one, an overwhelming number are foreign and every single American is asking for the moon and I just won't pay it.

If I can get someone younger and hungrier for half of what I'd pay some older guy who feels entitled to things, why on earth would I pick the American?


This is why Nike has their factories in China.

They don't, however, import these workers to the US.
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