Before Christmas, Intel laid off 311 workers in California, as revealed by the West Coast state’s Employment Development Department WARN filings. The impact includes 235 employees in Folsom and 76 in Santa Clara.
Affected employees, both in Folsom and other Santa Clara offices, face contract terminations by the month’s end and year-end.
Intel has disclosed additional job cuts
In August, 140 workers were let go, and roughly 500 more faced layoffs during late 2022 and early 2023, as reported by layoffs.fyi.
Although these cuts represent a small percentage of Intel’s global workforce of 110,000, they impact employees equally, whether in large numbers or gradually.
According to a company spokesperson, Intel aims to expedite its strategy and cut costs through various measures, including targeted staff reductions. The layoffs affect different areas of the company.
Approximately 13,000 employees are located in and around California’s major cities. This move aligns with Intel’s commitment to invest more in U.S.-based manufacturing, possibly influenced by ongoing China-U.S. trade tensions.
Acknowledging the difficulty of these decisions, the spokesperson emphasized the company’s commitment to treating affected employees with dignity and respect.
When questioned about compensation and redundancy packages, Intel has yet to provide details. The company’s spokesperson reiterated their focus on supporting impacted workers during the transition to new roles.
Intel had previously announced plans to achieve $3 billion in cost reductions in 2023, with a target of $8-10 billion in annualized savings by the end of 2025.
While any layoffs are unwelcome news, limiting their extent is a more positive outcome than anticipated, considering the substantial cost reduction goals announced in October 2022.