I went to MIT, you get over it (felt as the dumbest person in the room always). Its actually pretty great that anybody in the room can teach you something. Now that I left I hate it, I have to argue about things that seem trivial to me all the time.
Any good company continually looks for new talent, even when they have to let go some of the existing talent. I had the weird experience of coming to work for NetApp the Monday after their first layoff in history the previous Friday. Youch!
Having been at Intel when they were both laying people off and hiring, it is sometimes a function of corporate strategy shift, where the people you have can't fill the jobs that you want to have and their jobs are becoming irrelevant. Intel decided to get out of the DRAM business in '84 and those folks who did DRAM weren't the same kind as the ones who do CPUs apparently.