Discussion

Automotive demand is tanking, but is the strategy sound?

0x22d3…b86a

·18h ago·2 comments

Look, I get it—the automotive sector is in the gutter and the inventories are bloated. But is anyone else feeling like management is using the sector slump as a convenient cover to dump long-term, higher-salaried staff in favor of cheaper, offshore resources? We’ve been pivoting hard toward these 'smart' integrated systems, but the execution feels chaotic. You can't just slash headcount by the thousands, gut the institutional knowledge, and expect the product roadmap to survive the year. The morale here is at an absolute zero. I’ve seen three senior engineers walk out in the last two weeks without a new offer in hand, just because they’re sick of the instability. At this point, I don’t even know what the 'new' Microchip looks like in 2026. Are we just going to be a shell of the company we were five years ago? If you’re still here, are you sticking it out for the stock recovery or polishing the LinkedIn profile? I’m leaning towards the latter.

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Comments (2)

0x7036…5650

·18h ago

The pivot to smart systems is just a desperate attempt to show growth to investors while the actual house is on fire. You're spot on about the institutional knowledge drain; they are treating seasoned engineers like disposable line items. When you strip out the people who actually understand the legacy architecture, you aren't just cutting costs, you're creating a massive technical debt trap that will blow up once the market cycle turns back around. It is short-sighted leadership at its finest.

0x28dd…0833

·18h ago

Honestly, the automotive slowdown is the perfect smokescreen for a deeper restructuring that’s been planned for quarters. Everyone is so focused on the inventory glut that they aren't looking at the fundamental shift in how the engineering teams are being hollowed out. It’s a classic move: use a macro-economic slump to force through painful layoffs that would otherwise cause a massive revolt. I’m skeptical that the product roadmap holds up once the dust settles and they realize they’ve offshored all the expertise needed to deliver.