Intel Lays Off 311 Workers in California

Intel Lays Off 311 Workers in California

News by Nikola Djuric
Published: December 22, 2023

Intel has announced layoffs affecting 311 workers at its facilities in Santa Clara and Folsom, California, casting a shadow over the festive season for those affected.

The company filed a series of worker adjustment and retraining notification (WARN) notices with California's Employment Development Department, signaling a permanent layoff for these employees, effective December 31.

The majority of the job cuts, totaling 235, are occurring at Intel's Folsom office, where the company maintains a test floor and lab space. Additionally, 76 workers at the company's headquarters in Santa Clara are also being laid off.

These layoffs are part of Intel's ongoing efforts to streamline operations and reduce costs, amidst a challenging fiscal environment for the semiconductor giant.

An Intel spokesperson conveyed to The Register that the company is focusing on accelerating its strategy while trimming expenses through various initiatives, including targeted workforce reductions in certain business and functional areas.

The layoffs mark the end of a difficult fiscal year for Intel, which began with a $2.8 billion loss in the first quarter of 2023. Although the company returned to profitability in the second quarter, it has been actively working toward its goal of cutting spending.

Intel has laid off a total of 1,714 workers across its Santa Clara, San Jose, and Folsom offices throughout 2023.

In addition to reducing its workforce, Intel has canceled several high-profile projects and product lines to cut costs:

  • Canceled the $900 million R&D facilities in Oregon and Israel
  • Restructured its server and PC divisions
  • Discontinued its Blockscale crypto-mining chips
  • Revised datacenter GPU roadmap

Furthermore, Intel's restructuring also involves spinning off its FPGA business, with former data center and AI group EVP Sandra Rivera leading the new venture.

As it looks like right now, the layoffs and restructuring moves are part of Intel's broader strategy to navigate through a period of economic uncertainty and position itself for long-term growth.

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