Intel to Lay Off 311 Employees in California as Cost Reduction Strategy Continues

In a recent development, Intel has informed the California Employment Development Department about its plan to lay off 311 employees at its Santa Clara and Folsom campuses. This move is part of a comprehensive cost reduction strategy initiated by Intel CEO Pat Gelsinger last year, aimed at addressing the impact of declining market demand. The layoffs are projected to commence by the end of this year and will affect around 76 employees at the Santa Clara headquarters and approximately 235 employees at the Folsom campus.

This is not the first time Intel has downsized its workforce in California. In August, the company carried out similar layoffs, resulting in the termination of 89 employees in Folsom and 51 in San Jose. The Folsom R&D center alone has already let go of nearly 500 employees this year, and with this additional reduction of 235 positions, the total number of layoffs will surpass 700.

The Folsom site plays a critical role in Intel's research and development endeavors, encompassing the design of solid-state drives, graphics processors, software, and chipsets. In 2021, after Intel spun off its 3D NAND and solid-state drive businesses, some experts were transferred to Solidigm while others were let go. It is noteworthy that the layoffs have affected specialists in fields such as GPU software, surprising many observers. Currently, Intel has not issued an official statement regarding the specific positions impacted by the latest round of layoffs.

These workforce reductions are part of Intel's broader cost-cutting plan, which was initiated by CEO Gelsinger over a year ago. The plan was formulated in response to a significant decrease in demand for the company's products and aims to reevaluate operational and financial strategies. Despite a recovery in demand since the implementation of the program, Intel continues to implement cost reduction measures.

A spokesperson from Intel informed the media that the company is diligently working to expedite the execution of its strategy while reducing costs through various initiatives, including targeted personnel streamlining within certain business units and functional departments. The company emphasized that it still maintains a workforce of approximately 13,000 employees in California and remains committed to investing in U.S. manufacturing. However, its manufacturing operations are primarily concentrated in other states such as Arizona, New Mexico, and Oregon.