FOLSOM, Calif. — Intel Corp. plans to lay off over 300 employees across its Folsom and San José offices by next month.
The semiconductor company plans to permanently lay off 272 employees from its facility along Prairie City Road in Folsom and 47 employees from its facility along Innovation Drive in San José, according to a Worker Adjustment and Retraining Notification (WARN) notice sent Tuesday to the California Employment Development Department (EDD).
The notice said these layoffs are planned to take place over a 14-day period, starting Friday, Nov. 15.
All impacted employees are notified of separation either at least 60 days before, or approximately four weeks before, their separations are scheduled, the letter said. Affected employees reportedly receive nine weeks of pay and benefits.
In a statement, Intel said the layoffs come as part of a broad cost-savings plan announced in August. The decision to reduce the corporation’s workforce size is a hard but necessary one, the company said.
“These are the most difficult decisions we ever make, and we are treating people with care and respect,” Intel said in the statement. “These changes support our strategy to become a leaner, simpler and more agile company as we position Intel for long-term sustainable growth.”
Intel laid off 1,915 employees from December 2022 to December 2023, including 898 employees from its Folsom campus and 1,017 employees in the Bay Area, ABC10 previously reported.
Intel CEO Pat Gelsinger wrote to his employees in August that the company would by 2025 reduce its workforce 15% — or lay off 15,000 people — as part of a plan to deliver $10 billion in cost savings.
Sanjay Varshney, a Sacramento State finance professor, said then the company’s decisions likely come from shareholders’ needs.
"When it comes to Wall Street and shareholders, they obviously want to see better margins,” Varshney said in August. “They want to see better earnings. They want to see better revenues…Intel stock still hasn't gone back to where it used to be in the year 2000.”
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