After performing what was thought to be its last round of layoffs back in August, Intel Corporation has announced more jobs are being cut this month at its Folsom location. The company announced this week, it will move forward with an additional 235 “permanent layoffs” at the end of this month.
According to filings with the State of California Employment Development Department, the cuts are set to take effect by December 31. The latest reductions will bring the total cuts this year up to 784 at the Folsom campus. Earlier this year, the company eliminated 549 positions in a series of layoffs.
Intel officials have not specified what departments or teams would be the most effected in the forthcoming cuts. Intel Spokesman Addy Burr issues a media statement regarding the newly planned reductions, citing reasons aligning with the those for the previous cuts as the company continues to weather the challenges of competition and lacking sales.
“Intel is working to accelerate its strategy while reducing costs through multiple initiatives, including some business and function-specific workforce reductions in areas across the company,” said Burr. “These are difficult decisions, and we are committed to treating impacted employees with dignity and respect.”
As they have explained since the previous cuts, Burr reiterated that the company will continue to invest in areas core to its business, including its U.S.-based manufacturing operations, to ensure they are well-positioned for long-term growth.
The company first began eliminating positions after its revenue declined by 20% at the end of 2022, forcing the need for cost saving measures as future losses were forecasted.
The company had a first-quarter loss of $2.77 billion chip revenue, its largest loss in company history.
In comparison, just one year earlier the company reported a first quarter profit of more than 8 billion, illustrating the massive and rapid shift in revenue.
As Intel made its earlier cuts, it was reported that the company was struggling amid a sharp downturn in demand for the microprocessors it sells for PCs and data centers. Sales were down at that time company-wide by 38% over the six months prior to those initial reductions.
The company cited a slower economy and reduced spending from consumers and businesses that stocked up on computers early in the pandemic and have not had a need thereafter.
Intel has also been facing increased competition from rivals such as Taiwan Semiconductor Manufacturing Co., AMD and Nvidia, which have been chipping away at Intel’s customer base in various businesses sectors.
The Intel Folsom campus is an office, research development and support site without manufacturing facilities. To date, they have 5,182 employees here and continue to be the largest technology employer in the local region. The 1.5 million square foot Folsom facility first opened in 1984.
Photo: The Folsom Intel Campus consists of 1.5 million square feet space that is utilized by office staff, research development and support staff. The Folsom facility first opened in 1984. Photo: Bill Sullivan, Folsom Times.
