Intel plans to axe 235 people from its research and development facility in Folsom, California to offset the recent drop in quarterly revenue. This will be the fifth round of job cuts at Intel this year and the latest in the Bay Area. Across the previous four rounds, Intel cut 549 positions at the Folsom campus, which made up over 10% of the total employees.
Unfortunately, this may not be the last layoff this season. A company spokesperson has stated that there may be additional job cuts in early 2024. He explained that Intel is working to accelerate its strategy while reducing costs through multiple initiatives, including business and function-specific workplace reductions across the company.
Intel plans to cut costs by $10 billion by 2025 through layoffs, reduced hours, and selling unneeded IP/brands/divisions. During the chipmaker’s Q3 earnings call in October, company CEO Pat Gelsinger stated that the slowdown in the PC market mandated a reduction in spending as its quarterly revenue dropped from $19.4 billion to $15.4 billion year-on-year.
Intel’s Folsom team is primarily responsible for SoC validation, including integrated/discrete graphics, AI blocks, firmware, and power management. The layoffs are scheduled to begin on the 31st of December and last for two weeks.