Intel Begins 5th Round of Layoffs, further job losses Expected in 2024

By Consultants Review Team Thursday, 21 December 2023

Intel has disclosed the latest in a series of worker reductions, announcing plans to remove 235 jobs at its Folsom, California, research and development facility. The upcoming layoffs, which will begin on December 31 and last two weeks, will be the fifth round of job losses this year.

The announcement, based on state regulatory filings and published by the San Francisco Chronicle, comes as the corporation seeks to consolidate operations and adapt its approach to current market realities.

Intel's representative emphasized the company's commitment to advancing its strategic direction while attempting to reduce expenses in many aspects of its operations, including individual 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 representative for the company was cited as saying.

This decision could be a forerunner to future worker reductions in the next year, indicating the possibility of further firm restructuring. Previously, Intel had cut 549 jobs at its Folsom facility, accounting for somewhat more than 10% of the total staff.

This round of layoffs is in line with Intel's larger financial goals. In 2022, the business announced plans to cut $10 billion in costs by 2025 through a combination of layoffs, shorter working hours, and probable division divestitures.

Despite these reductions, Intel maintains a sizable workforce, with over 13,000 employees spread across California. The Folsom campus, a hub for different R&D efforts, has played an important role in the company's pursuits, which include the creation of SSDs, graphics processors, software, and chipsets.

Earlier reports suggested that massive layoffs were possible, perhaps affecting up to 20% of its client computing and data center divisions. During an earnings call in October, Intel CEO Pat Gelsinger indicated that the company's financial performance had suffered as a result of a slowdown in the personal computer industry. Revenue fell from $19.4 billion to approximately $15.4 billion year on year, according to the third-quarter data.


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