According to latest report that Intel Corporation plans to lay off 235 new employees starting Dec 31 at its research and development campus in Folsom.
The major chipmaker, in a notice to the California Employment Development Department, said the job reductions will take place over a two-week period and will be permanent.
The company also warned that additional layoffs “are expected” beyond the 235 in 2024 at the Folsom campus but did not offer any specifics.
The latest job eliminations at the Sacramento region’s largest tech employer are in addition to the 549 cuts Intel cut in Folsom in four separate job reductions spread throughout 2023.
Intel, based in Santa Clara, has around 5,000 employees at its Folsom campus.
Company spokeswoman Addy Burr in a statement called the latest reductions “difficult decisions.”
“Intel is working to accelerate its strategy while reducing costs through multiple initiatives, including some business and function-specific workplace reductions across the company,” she said.
Burr said the company has more than 13,000 employees in California and continues to invest in areas core to the company’s business. However, She did not offer any details.
Intel Chief Executive Officer Pat Gelsinger said in mid-2022 that a sluggish personal computer market had financially hurt the company.
He also said that Intel would embark on a $10 billion cost reduction programme through 2025, including layoffs.
At an earning call on Oct 28 of this year, Gelsinger told analysts that layoffs are necessary to “optimise headcount,” which he said will add $2 billion more in savings.
Company revenue reached close to $15.4 billion in the third quarter ending Sept 30, beating average stock analyst predictions of $15.3 billion.
But revenue was significantly down from the approximate $19.4 billion Intel earned in the same period a year earlier.
Gelsinger on Oct 28 offered more optimistic news for coming months stating that a long-promised turnaround is now fully underway fueled by an increase in personal computer sales and a more competitive product line.
He said the fourth quarter of this year will bring $14.6 billion to $15.6 billion of revenue. This compares to an average analyst estimate of $14.4 billion.
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