FOLSOM, Calif. — Intel Corp. is selling its Folsom campus, the company said Sunday.
The semiconductor company will lease back only the space it needs at the site along Prairie City Road as part of a cost-effective strategy, Intel said in a statement.
“We are shifting our global real estate strategy to focus on fewer, more populated locations and eliminate underutilized space,” the company said. “This approach will foster greater in-person collaboration at our largest sites while also delivering cost savings for the company. We are exploring more cost-effective space usage options for Intel’s Folsom site, including a partial lease back of our current space.”
Last month, Intel announced it planned to lay off 272 employees at its Folsom site within 60 days. It laid off approximately 898 employees from the Folsom campus from December 2022 to December 2023.
“These are the most difficult decisions we ever make, and we are treating people with care and respect,” the company said in a statement from October. “These changes support our strategy to become a leaner, simpler and more agile company as we position Intel for long-term sustainable growth.”
Intel CEO Pat Gelsinger said over the summer the company would reduce its workforce 15% — or lay off 15,000 people — by 2025 as part of a plan to deliver $10 billion in cost savings.
Sanjay Varshney, a Sacramento State finance professor, told ABC10 in August 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. “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.”
Intel stock price hovered around $70 in August 2000; it sat just above $25 as of 11:45 a.m. Monday.
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