Intel Corporation has initiated a wave of layoffs across its workforce, with hundreds of employees in California affected as the company seeks to streamline operations.
Following the announcement in August of plans to cut 15,000 jobs globally, Intel has begun issuing layoff notices in compliance with the Worker Adjustment and Retraining Notification (WARN) Act.
According to recent reports, 272 positions will be eliminated in Folsom and 47 in San Jose, California. The layoffs are part of a broader strategy that includes significant cuts in Oregon, Arizona, and Texas, with a total of approximately 1,300 jobs eliminated in Oregon and 385 in Arizona. The company expects these reductions to be permanent, with the first departures from the Folsom and San Jose locations scheduled for the second half of November. Notably, none of the affected employees are unionized.
Addy Burr, an Intel spokesperson, emphasized that the decision to cut jobs is challenging but necessary as part of the company’s efforts to become a more agile organization.
“These are the most difficult decisions we ever make, and we are treating people with care and respect,” she stated.
Burr highlighted that these changes align with Intel’s strategy for long-term sustainable growth.
This announcement comes at a critical juncture for Intel, which recently secured $3 billion from the US government for collaboration with the Department of Defense and is pursuing additional public funding. However, the company is facing intense competition in the semiconductor industry, struggling to keep pace with rivals such as Taiwan Semiconductor Manufacturing Company (TSMC) and Nvidia. Intel’s stock has seen a significant decline of over 50% this year, in stark contrast to Nvidia’s impressive 170% increase in valuation during the same period.
The current layoffs are part of a comprehensive cost-saving plan announced in August, which includes further workforce reductions and cuts to capital expenditures and research and development initiatives. In total, Intel expects to save more than $10 billion by 2025 through these measures.
Intel is set to release its third-quarter earnings report on October 31, with preliminary revenue forecasts indicating a decline of 5 to 12% compared to the previous year.
SFGate, the Register, and Arizona’s Family contributed to this report.
