Intel Corporation has once again dramatically expanded its workforce reduction at its Folsom campus, reportedly eliminating more than 500 additional jobs in the latest round of cuts that was expected to be far fewer this week, according to filings with the state of California and a statement from the tech giant.
The Santa Clara-based chipmaker initially filed a Worker Adjustment and Retraining Notification (WARN) notice in June indicating it would lay off 54 employees in Sacramento County. However, two subsequent WARN notices filed last week revealed that several 344 more positions would be eliminated, reportedly bringing the total number of local layoffs in recent weeks to approximately 572.
The job cuts impact a wide array of roles, with product development engineers being hit particularly hard—31 engineers are among those being let go. Intel confirmed that the terminations are permanent and that the first separations began during a 14-day period that started July 11.
“As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company. Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution,” reads a statement Intel received by Folsom Times regarding the increased cuts currently taking place. “We are making these decisions based on careful consideration of what’s needed to position our business for the future, and we will treat people with care and respect as we complete this important work.”
The latest round of layoffs follows a broader restructuring initiative announced last year, when Intel shared its intention to cut about 15% of its global workforce—roughly 15,000 jobs—as part of an effort to reduce costs and refocus its business amid growing competition and changing technology demands.
In Folsom, these new reductions add to the 330 positions that were previously cut in two phases between November 2023 and March 2024. In total, more than 900 Intel jobs have been eliminated at the company’s longtime Folsom campus over the past year.
Once a cornerstone of Folsom’s tech industry, Intel’s local presence has been undergoing significant transformation. As previously reported by Folsom Times, the company disclosed plans to sell its Folsom campus property and lease back only the space it needs. The facility, which Intel has occupied since 1984, has historically been one of the region’s most prominent employers.
In April, Intel CEO Pat Gelsinger spoke candidly about the company’s difficult decisions ahead, acknowledging the hardship but reaffirming Intel’s commitment to long-term efficiency and performance. At the time, Gelsinger said the company was targeting at least $10 billion in savings by 2025 and more than $20 billion in structural cost reductions in the longer term.
Intel’s actions come amid continued turbulence in the semiconductor industry, where slowing demand, shifting global supply chains, and increased competition from companies like AMD and NVIDIA have placed new pressure on legacy chipmakers.
While Intel maintains that it remains committed to innovation and investment in key areas such as artificial intelligence and foundry services, the continued downsizing in Folsom signals a profound shift for both the company and the local workforce.
For more background on Intel’s recent cost-cutting strategy and leadership decisions, read Folsom Times’ April coverage: New Intel CEO outlines tough decisions, more cuts ahead
