“Intel’s Workforce Reduction Continues: 235 Jobs Cut at Folsom R&D Base”
In its latest announcement, Intel has unveiled plans to trim its workforce, targeting 235 jobs at its Folsom research and development base in Sacramento County. These impending layoffs, set to commence on December 31 over a two-week period, mark Intel’s fifth round of job cuts this year.
According to state regulatory filings, covered notably by the San Francisco Chronicle, Intel’s move is part of its strategy to streamline operations and adapt to evolving market dynamics. An Intel spokesperson highlighted the company’s commitment to advancing its strategic direction while managing expenses, stating, “Intel is working on accelerating its strategy while reducing costs through various initiatives, including targeted workplace reductions across the company.”
This development raises speculation about further restructuring for Intel. Earlier this year, the company eliminated 549 positions at its Folsom campus, representing over 10% of its total workforce.
The job cuts align with Intel’s broader financial goals announced in 2022, aiming to reduce costs by $10 billion by 2025, involving layoffs, reduced working hours, and potential division divestitures.
Despite these reductions, Intel maintains a substantial employee base, with over 13,000 individuals employed in California, as reported by Business Today. The Folsom campus, vital for research and development efforts, plays a crucial role in various projects, including SSDs, graphics processors, software, and chipsets.
Earlier speculations hinted at significant layoffs affecting up to 20% of employees in client computing and data centre divisions.
In an October earnings call, Intel CEO Pat Gelsinger disclosed the company’s financial setback due to a slowdown in the personal computer market. Third-quarter results reflected a substantial revenue decline, falling from $19.4 billion to nearly $15.4 billion year-over-year. This article delves into the details of Intel’s ongoing workforce reductions and their strategic implications amid a challenging market landscape.