Intel initiates fifth round of layoffs, further job losses in 2024 expected

Intel has announced its latest move in a string of workforce reductions, revealing plans to cut 235 jobs at its research and development base in Folsom, situated in Sacramento County. The impending layoffs, set to commence on December 31 and span a two-week period, mark the fifth round of job cuts within this year alone.

The news, derived from state regulatory filings and reported by the San Francisco Chronicle, comes as the company aims to streamline operations and adjust its strategy to current market dynamics.

A spokesperson for Intel highlighted the company's focus on advancing its strategic direction while aiming to curtail expenses across various areas of its operations, including specific business segments. "Intel is working to accelerate its strategy while reducing costs through multiple initiatives, including some business and function-specific workplace reductions across the company,” a company spokesperson was quoted as saying.

This move could be a precursor to additional staff reductions in the coming year, suggesting the likelihood of further restructuring within the company. Previously, Intel had eliminated 549 positions at its Folsom campus, accounting for slightly over 10% of the entire workforce.

This series of job cuts aligns with Intel's broader financial objectives. In 2022, the company announced its intentions to slash costs by $10 billion by 2025 through a combination of layoffs, reduced working hours, and potential division divestitures.

Despite these cutbacks, Intel continues to maintain a substantial employee base, with more than 13,000 individuals employed across California. The Folsom campus, a hub for various research and development endeavours, has played a pivotal role in the company's pursuits, encompassing the development of SSDs, graphics processors, software, and chipsets.

Earlier speculations indicated the possibility of significant layoffs, potentially affecting up to 20% of employees within its client computing and data centre divisions.

During an earnings call held in October, Intel CEO Pat Gelsinger revealed that the company faced a setback in its financial performance owing to a slowdown in the personal computer market. The third-quarter results showcased a notable decline in revenue, plummeting from $19.4 billion to nearly $15.4 billion year-over-year.

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