62 additional cuts planned after company reports largest first quarter loss in history
Intel Corporation has notified State of California Employment officials that it will be performing additional staff reductions later this month as the company continues to navigate its way through a challenging economic market.
An additional 62 employees will reportedly be laid off, according to information filed with the California Employment Development Department. The newest round of staffing cuts will be the third in less than six months. Previously this year, the corporation, who has long been the the city of Folsom’s largest employer and the largest of the tech region, announced 343 position reductions, which took place in January and March.
Last month, Intel reported it suffered a record loss of $2.8 billion in its first quarter, according to a report published in the Silicon Valley Business Journal. One year prior, the same report illustrated a profit of $8.1 billion in its first quarter. The latest loss is reportedly the largest the company has ever suffered in a first quarter in his history.
“We are focused on identifying cost reductions and efficiency gains through multiple initiatives, including some business and function-specific workforce reductions in areas across the company,” reads a statement issued to the media by Intel representative Andy Burr.
In early 2022, Intel reported that it had 5,300 employees in Folsom, but at the end of last year the chipmaker cut 343 jobs at that site, taking Folsom below 5,000 jobs. The latest cuts whittle that figure down further.
The most recently announced cuts, and those previously made are a result of slowing personal computer sales, that fell nearly 30% across the world this year so far. The dismal sales have affected the company’s chip manufacturing sales.
Intel has not disclosed specific details in regards to the departments that will suffer the forthcoming cuts. Intel’s CEO and executive management team have previously accepted salary reductions. Last year, Intel employed over 5,300 employees which dropped to below 5,000 after the earlier cuts this year that consisted of 343 total positions.