TSMC founder Dr. Morris Chang explains why using supervisor performance evaluations to select layoff targets destroys employee trust.
Assertion Not checkable as stated
Chang: Tim Cook told me in 2011 that Intel cannot run a foundry
“And anyway, he told me there's nothing to worry about because Intel just does not know how to be a Foundry.”
Assertion Not checkable as stated
Morris Chang: Mark Liu declined TSMC BD role due to small headcount
“So, I, ah, first offered the marketing, ah, business development job to the guy who was in the Bigger job, advanced technology, Mark. And I explained to him that I did not think he had had any significant marketing experience in the past, and this would, this …”
Assertion Not checkable as stated
Chang: None of Taiwan's PC makers liked dealing with Intel
“Before this Apple thing, Apple and we, before Apple became our customer, I knew a lot of Intel's customers in Taiwan. You know, all the PC makers are Intel's customers. I mean, they, none of them liked Intel. None of them.”
Assertion Supported
Chang: 2009 TSMC CEO retake was triggered by 600-700 performance layoffs
“Another problem was the immediate one that triggered me to retake the CO ship because the previous CO had laid off, except he didn't use the term laid off, you know. He used the bad performance review, the worst performance review people, and there were about …”
Insight
Chang: Companies needing workers back within one year should not do layoffs
“If in a year you have to hire people back, you have to hire the laid off people back, then you shouldn't lay off, because the layoff, the separation expense is usually half a year, about half a year, and it takes at least half a year to train a person. So if y…”
Assertion Supported
Chang: TSMC's 2009 CEO circumvented board approval by framing layoffs as performance dismissals
“So I said to him, if you want to lay off, bring it to the board. I'll call a special board meeting. And I knew what I would ask the board to do, you know, which was not to grant the permission. That's right. But he decided to circumvent that, the CEO, you know…”