Because Intel has the policy of generally paying "above market average" this has the effect of retaining employees who are aware that they are overpaid and not attracting the employees who could (and should) be making WAY above market average.
There have been, over the years, numerous "redeployments" where employees are asked to find another job internally or leave (within 3 months, normally) this has resulted in the attrition of about 20000 employees over the last few years. So, naturally, people are worried about their own job security. Intel has also redeployed groups only to hire their replacements in cheaper geographies. I have had the opportunity to train my replacement in India - that was fun.
The benefits have been cut over the last few years. Intel has cut the amount contributed to 401K programs from 10 to 7 percent and they have also modified, on more than one occasion, the formula by which bonuses are calculated (modified so that the bonuses became smaller, of course).
Intel does not provide state of the art laptops or desktops for its employees, which is baffling for a technology company. Typically the hardware given to employees is a generation or two behind the fastest available on the market.
Oh, and one last thing, the cafeteria food is less than satisfactory.
