News: Intel to begin its New Year with layoffs? Here is the truth

Strategic HR

Intel to begin its New Year with layoffs? Here is the truth

According to regulatory filings submitted to the state, Intel has announced its intention to lay off 235 employees at its Folsom-based research and development facility in Sacramento County.
Intel to begin its New Year with layoffs? Here is the truth

Intel's latest announcement continues its trend of reducing its workforce, this time with plans to cut 235 jobs from its Folsom research and development base in Sacramento County. These impending layoffs, scheduled to begin on December 31 and extend over a two-week period, mark the fifth round of job cuts for the company in this year alone.

Reports from state regulatory filings, notably covered by the San Francisco Chronicle, detail Intel's move as part of its effort to streamline operations and adapt to the ever-evolving market dynamics.

An Intel spokesperson emphasised the company's commitment to advancing its strategic direction while managing expenses. They stated, "Intel is working on accelerating its strategy while reducing costs through various initiatives, including targeted workplace reductions across the company."

This move might indicate further restructuring ahead for Intel. Earlier this year, the company eliminated 549 positions at its Folsom campus, accounting for over 10% of its total workforce.

These job cuts align with Intel's broader financial goals. In 2022, the company announced intentions to reduce costs by $10 billion by 2025, incorporating layoffs, reduced working hours, and potential division divestitures.

Despite these reductions, Intel still maintains a significant employee base, employing more than 13,000 individuals in California, reported Business Today. The Folsom campus, crucial for research and development efforts, plays a pivotal role in various projects, including SSDs, graphics processors, software, and chipsets.

Earlier speculations hinted at the possibility of substantial layoffs affecting up to 20% of employees in client computing and data centre divisions.

During an earnings call in October, Intel CEO Pat Gelsinger disclosed the company's financial setback due to a slowdown in the personal computer market. Third-quarter results reflected a substantial revenue decline, dropping from $19.4 billion to nearly $15.4 billion year-over-year.

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Topics: Strategic HR, #Layoffs, #HRTech, #HRCommunity

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