Workforce reductions are continuing at Intel Corporation’s Folsom campus. This week the tech giant has announced its will be cutting 58 more positions. The reductions are expected to begin as early as Oct. 15.
The announcement is the latest in a series of job cuts that have taken place over the last year for the Santa Clara based company. With the addition of the latest cuts, the Folsom campus will have eliminated a total of 549 positions in just this year alone. The most recent cuts were in August when 89 positions were cut. Back in May the company also made 62 cuts in May which followed the initial reductions of the year in the amount of 340 positions.
The continuation of cutting costs by Intel continues to come in the wake of a decrease in demand for its products that began shortly after the pandemic and have continued since.
Some of the loss in demand can be attributed to reductions in workforces across the nation, as well as growth in remote work along with increased competition in the industry. Global computer sales suffered a 29% decline in the first quarter of this year.
In a previous Folsom Times article, the company shared that it had suffered its largest quarterly loss in history earlier this year. That first-quarter loss came in the amount of $2.77 billion. In the same quarter one year prior, Intel reported an $8.11 billion profit, illustrating the drastic loss in revenue in the one-year period. In its second quarter, the company still reported a 15% loss in revenue compared to the precious year.
“Intel is working to accelerate its strategy while reducing costs,” said Intel Spokesperson Addy Burr in a statement the media following the most recent news of reductions and said the company, “continues to identify further cost reductions through multiple initiatives, including some business and function-specific workforce reductions in areas across the company.” The statement added that Intel is continuing to invest in its core business to ensure it will be positioned for long-term growth.
Prior to the most recent round of cuts, Intel employed a total of 5,182 associates in Folsom as the city’s largest employer. Once the new cuts are complete the company will have a total of 13,000 employees across the state.
The latest round of reductions are expected to be permanent, according to Intel’s recent report to the County of Sacramento and the California Employment Development Department. The company is attempting to reduce costs by an estimated $3 billion a year in an effort to tilt the scales back in its favor.
Intel’s Folsom Campus is one of the company’s largest facilities. It covers more than 236 acres of land and boasts a total of 1.5 million square feet of office and lab space. The facility is built to host as many as 10,000 employees.
Photo: Intel Corporation