Folsom’s largest employer, Intel Corp. has announced it will need lay off an additional 58 employees from its local campus as part of its continued cost-cutting measures the company cites is in response to stagnant sales and increased competition.
Intel’s latest news of the layoffs became public in a the form of a newly filed WARN report with the California Employment Development Department. The WARN Act requires employers to give 60-days’ noticebefore a mass layoff, plant closure, or relocation.
Employers must notify employees and both state and local representatives. This helps workers prepare for job loss, find new jobs, or train for new opportunities. According to the report, the newest round of reductions are expected to take place by March 31.
As previously reported over the last 24 months, Intel’s Folsom workforce has seen significant reductions in recent years. Once employing over 6,000 people in 2018, the site now reportedly has fewer than 4,000 workers. The upcoming layoffs are part of a series of job cuts that have hit the Folsom location over the past three years. The most recent round, on November 15, resulted in 272 job losses.
Late last year, Intel announced its plans to sell the 150-acre Folsom campus in a sale-leaseback deal to free up capital tied to real estate. The campus, one of Intel’s largest, includes seven buildings with a combined 1.5 million square feet of office, lab, and test space. Commercial real estate firm Colliers is managing the sale and leasing of the vacant space.
The layoffs align with Intel’s broader restructuring efforts, as outlined in an earlier letter from former CEO Pat Gelsinger, which stated the company aimed to cut some 15,000 jobs as part of its cost-saving strategy. To facilitate the reductions, Intel then introduced voluntary separation and early retirement programs.
Late last summer, the City of Folsom and Choose Folsom, which is the Folsom Chamber of Commerce, issued a joint statement citing their support for the local workforce that could be affected in the cuts as they take place. Intel is the largest employer in the City of Folsom.
“We at the City of Folsom and Choose Folsom recognize the potential impact this news may have on our community. While the specific details concerning the number of layoffs affecting Folsom remain uncertain, we extend our deepest sympathies to all those impacted by this decision,” read the statement shared with Folsom Times at the time.
“The City of Folsom and Choose Folsom are committed to supporting our local workforce during this challenging time. We are confident in our community’s resilience and ability to adapt to changes in the industry,” the statement continued. “As we navigate through this period, we look toward the future with optimism. We believe in the strength and diversification of the tech industry in Folsom, and we are dedicated to fostering an environment that continues to attract and retain a diverse range of tech enterprises.”
Intel, founded in 1968 and headquartered in Santa Clara, is a global leader in semiconductor technology, particularly known for its computer processors. The company has faced increased competition from rivals such as Taiwan Semiconductor Manufacturing Co. (TSMC), AMD, and Nvidia, which have steadily chipped away at Intel’s market share in various sectors. Intel’s Folsom campus, covering 236 acres and housing over 5,000 employees, is a major hub for the company’s office, research, development, and support activities.