FOLSOM, Calif. — Intel is planning to lay off 15% of its workforce and they're one of the biggest employers in Folsom. City officials now say they're going to do everything they can to support those impacted.
"I felt like Intel stopped caring about its employees about 10-15 years ago," said Jeff Galinovsky.
After three decades at Intel in Folsom, Galinovsky says this latest round of layoffs illustrates the company's lack of interest in its employees. Last week, Intel's CEO sent a letter to employees announcing 15,000 positions would be cut by the end of the year in an attempt to save $10 billion.
"When it comes to Wall Street and shareholders, they obviously want to see better margins. They want to see better earnings. They want to see better revenues," said Sanjay Varshney, a Sacramento State professor of finance.
Intel would not grant ABC10's request for an interview Tuesday and it's unclear how many people will be laid off in California and from which campuses.
Earlier this year, the Biden administration provided $8.5 billion in direct funding to Intel through the CHIPS Act to advance semi conductor projects. Sources tell ABC10 Intel has yet to receive that money. Until then, finance experts believe cutting costs with the work force is the only reasonable way to go.
"Intel stock still hasn't gone back to where it used to be in the year 2000," said Varshney.
This week, Intel started what they're calling an enhanced retirement offering for eligible employees to voluntarily leave. Galinovsky believes this should be a learning lesson for those at the top.
"It's not the employees that you're letting go of, they're not your problem. It's leadership and it starts at the top and that's where you need to clean house, otherwise Intel is not going to recover from this," said Galinovsky.
The city of Folsom didn't receive any WARN notices regarding layoffs at the Folsom Intel campus. A city spokesperson provided ABC10 with this statement:
"In light of the recent announcement from Intel regarding the layoff of 15,000 employees globally, we at the City of Folsom and Choose Folsom recognize the potential impact this news may have on our community. While the specific details concerning the number of layoffs affecting Folsom remain uncertain, we extend our deepest sympathies to all those impacted by this decision.
The City of Folsom and Choose Folsom are committed to supporting our local workforce during this challenging time. We are confident in our community's resilience and ability to adapt to changes in the industry. As we navigate through this period, we look toward the future with optimism. We believe in the strength and diversification of the tech industry in Folsom, and we are dedicated to fostering an environment that continues to attract and retain a diverse range of tech enterprises.
Our focus remains on creating opportunities, encouraging innovation, and ensuring that Folsom remains a hub for technological advancement. We will work collaboratively with local businesses, educational institutions, and community leaders to support affected individuals and drive economic growth."
WATCH MORE ON ABC10: California legislator calls for California Fish & Wildlife to investigate SeaQuest Folsom
