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Intel has commenced its fifth round of workforce reductions, with additional job cuts anticipated in 2024

Intel has announced plans to lay off 235 employees at its research and development facility in Folsom, located in Sacramento County. This move represents the fifth round of job cuts for the company in 2023, with the layoffs set to begin on December 31 and extend over a two-week period. The decision, revealed through regulatory filings with the state, is part of Intel’s broader efforts to streamline operations and adapt its strategy to the current market landscape.

The company’s spokesperson emphasized Intel’s commitment to advancing its strategic direction while implementing cost-saving measures across various operational areas, including specific business segments. The spokesperson stated, “Intel is working to accelerate its strategy while reducing costs through multiple initiatives, including some business and function-specific workplace reductions across the company.”

The announcement raises the possibility of additional staff reductions in the coming year, suggesting ongoing restructuring efforts within the company. Intel had previously eliminated 549 positions at its Folsom campus, constituting slightly over 10% of the total workforce.




Intel initiates fifth round of layoffs, further job losses in 2024 expected - BusinessToday
Intel initiates fifth round of layoffs, further job losses in 2024 expected

These job cuts align with Intel’s broader financial goals. In 2022, the company outlined its intention to reduce costs by $10 billion by 2025 through a combination of layoffs, reduced working hours, and potential division divestitures.

Despite these workforce reductions, Intel maintains a significant employee base, with over 13,000 individuals employed across California. The Folsom campus, serving as a center for various research and development activities, has played a crucial role in Intel’s pursuits, encompassing the development of SSDs, graphics processors, software, and chipsets.

Earlier speculations hinted at the possibility of substantial layoffs, potentially affecting up to 20% of employees within its client computing and data center divisions.

During an earnings call in October, Intel CEO Pat Gelsinger disclosed that the company faced challenges in its financial performance due to a slowdown in the personal computer market. The third-quarter results indicated a significant decline in revenue, dropping from $19.4 billion to nearly $15.4 billion year-over-year.

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