Intel plans mass layoffs, including at its Folsom campus. How many jobs will be cut?
Intel Corp. plans to lay off dozens of Northern California employees in early 2023, including more than 100 at its large Folsom campus.
The semiconductor company plans to permanently eliminate about 111 jobs in Folsom, according to a notice filed late last week to the California Employment Development Department.
Intel is the capital region’s largest tech employer, with approximately 5,300 workers in the area. Layoffs of 111 positions would work out to cuts of about 2% of its Sacramento-area workforce. The layoffs are expected to take place by the end of January, according to a Worker Adjustment and Retraining Notification (WARN) notice filed to the state.
The company’s 1.5-million-square-foot site in Folsom, located on Prairie City Road near Highway 50, is used for research and development. It opened in 1984.
“While layoffs are not good news, it is reassuring that Intel still employs more than 5,000 employees in Folsom and continues to invest in our community,” Christine Brainerd, communications director for the city of Folsom, said in a statement. “We are told that Intel will continue to hire new positions at the Folsom campus in the future.”
The “planned mass layoff will affect approximately 111 employees and is expected to be permanent,” Carolann Bullock, Intel’s director of employment, wrote in the notice sent Friday to state regulators, Folsom Mayor Kerri Howell and Sacramento County Supervisor Don Nottoli.
“Organizations across Intel are working to make tough decisions, but ultimately looking for opportunities to drive efficiencies,” Intel spokeswoman Addy Burr said in a statement.
“As mentioned during our earnings call, we are focused on driving $3 billion of cost reductions in 2023, one-third of this in cost of sales and two-thirds in operating expenses,” Burr said. “These savings are expected to be realized through multiple initiatives to optimize the business. ...
“This will also include some business and function-specific workforce reductions in areas across the company,” the statement added. “These are very difficult decisions, but we are taking these actions to ensure we are well-positioned for long-term growth.”
Intel is also planning to cut 90 jobs at its Santa Clara headquarters, the Bay Area News Group reported. The staff reductions come as more than a dozen other tech and biotech companies in the Bay Area have announced layoffs of more than 6,000 combined jobs, including more than 2,500 at Meta and 1,100 at Twitter, since the start of October.
According to the notices, employees are being laid off with at least 60 days’ notice, with the first layoffs scheduled for a two-week window beginning Jan. 31.
