Intel’s cost-cutting move hits Folsom campus; hundreds of job cuts expected
Intel plans to cut hundreds of jobs at its Folsom campus, as the Santa Clara-based tech giant struggles with declining demand and fierce competition.
The company notified the state this week that it plans to cut 272 positions in Folsom and 47 positions in San Jose. During a call with analysts in early August, CEO Pat Gelsinger said the company would reduce its global employee headcount by more than 15% by the end of 2025. The company had 124,800 employees as of December, according to regulatory filings.
“We do not do this lightly, and we have carefully considered the impact this will have on the Intel family,” he told analysts. “These are hard but necessary decisions.”
The majority of the cuts, he said, would be made by the end of 2024.
The layoffs in Folsom and San Jose will take effect in late November. The company offered voluntary buyouts earlier this year. The Folsom campus employs around 5,000 people, the Bee previously reported.
The company said in a statement Friday that the reductions are the result of difficult decisions, but will position Intel for long-term, sustainable growth.
Intel’s profits have slid as the company faces tempered demand and a competitive market. The company reported $1.7 billion in income last year, down from $8 billion in 2022 and $19.9 billion in 2021. Intel stock has lost more than half its value this year, trading at $22.65 as of Friday morning.
The restructuring move is expected to take operating costs down to roughly $20 billion this year and $17.5 billion in 2025.
This story was originally published October 18, 2024 at 11:41 AM.
