Intel is set to cut an additional 58 jobs at its Folsom, California, campus by the end of March, continuing its aggressive workforce reduction strategy as part of a broader effort to slash $10 billion in costs by 2025. This latest round of layoffs adds to the more than 1,000 positions already eliminated at the site since early 2023 and underscores the company’s ongoing struggle to regain its competitive edge in the semiconductor industry.

The layoffs are part of a sweeping cost-cutting initiative that has seen Intel’s global workforce shrink by approximately 23,000 employees since late 2022. Of those, roughly 16,000 positions were eliminated in 2024 alone. The Folsom campus, known for its research and development operations, has been particularly impacted as Intel recalibrates its strategy amid declining revenue and mounting competition from industry giants like Nvidia and AMD.

The semiconductor industry has grown increasingly competitive, and Intel has struggled to keep pace. In 2024, the company reported $53.1 billion in revenue, down from $54.2 billion the previous year. More concerning for investors, Intel’s stock value plunged by 60% over the same period, reflecting market skepticism over its turnaround efforts.

Intel’s workforce downsizing has been accompanied by broader restructuring moves, including the sale of its Folsom property. In November, the company announced plans to offload its real estate holdings in the area while leasing back a portion of the space. This shift signals a pullback from the once-thriving campus and aligns with a broader trend in the tech industry, where companies are reassessing office footprints in response to economic pressures and evolving workplace dynamics.

While Intel has aggressively reduced headcount, the company continues to face challenges in improving its overall efficiency. In 2020, Intel generated over $700,000 in revenue per employee. By 2023, that number had dropped below $440,000, raising concerns about the effectiveness of its cost-cutting measures. Despite reducing its workforce to approximately 108,900 employees—bringing it back to its 2018 employment levels—Intel is generating significantly less revenue than in previous years.

Intel remains committed to its turnaround plan, focusing on advancing its semiconductor manufacturing capabilities to reclaim leadership in chip production. However, with industry dynamics shifting rapidly and competitors making significant strides, Intel faces an uphill battle in regaining market dominance.

For employees at the Folsom site, the latest round of job cuts has fueled uncertainty about the future. While Intel’s restructuring efforts may position the company for long-term stability, the short-term impact on its workforce and innovation capacity remains a pressing concern. With no clear end to the layoffs in sight, the coming months will be critical in determining whether Intel’s strategy can successfully restore its competitive standing or if further turbulence lies ahead.