Intel’s job cuts deepen— Employees brace for more layoffs

Intel’s sweeping cost-cutting strategy continues to impact its workforce, with the tech giant set to lay off another 58 employees at its Folsom, California, campus by the end of March. This latest round of job cuts adds to the more than 1,000 positions eliminated at the site since early 2023, underscoring Intel’s ongoing struggles to regain its footing in the increasingly competitive semiconductor industry.

The company has been systematically reducing its workforce as part of a broader plan to trim $10 billion in costs by 2025. Since the end of 2022, Intel’s global employee count has shrunk by approximately 23,000, with around 16,000 layoffs occurring in 2024 alone. The Folsom site, which has long served as a hub for research and development, has been hit particularly hard as Intel recalibrates its operations amid declining revenue and fierce competition from industry rivals like Nvidia.

Intel has faced mounting challenges in recent years, including shrinking market share and execution hurdles in its turnaround strategy. The company reported $53.1 billion in revenue for 2024, a decline from $54.2 billion the previous year, and its stock value plummeted by 60% over the course of the year. These financial struggles have necessitated drastic cost-cutting measures, including workforce reductions and real estate downsizing.

In November, Intel announced plans to sell its Folsom property and lease back a portion of the space, signaling a strategic retreat from the once-thriving campus. The move aligns with a broader industry trend of tech companies reassessing their office footprints in response to changing work patterns and economic pressures.

As Intel scales back its workforce, concerns over productivity have also come to the forefront. In 2020, the company generated over $700,000 in revenue per employee, but that figure dropped to under $440,000 by 2023. Despite reducing its headcount to approximately 108,900 employees at the end of 2024—bringing it back to 2018 levels—Intel continues to generate significantly lower revenue than in previous years, raising questions about its long-term strategy and efficiency.

While Intel remains committed to executing its turnaround plan, its ability to regain a competitive edge remains uncertain. The company has been investing heavily in advanced semiconductor manufacturing, aiming to reclaim its leadership in chip production. However, with the broader industry shifting rapidly and competitors gaining ground, Intel faces an uphill battle.

For employees at the Folsom campus, the latest round of layoffs adds to an already uncertain future. As Intel pushes forward with its cost-cutting initiatives, further workforce reductions could be on the horizon, raising concerns about job stability in one of California’s key tech hubs.

The coming months will be critical in determining whether Intel’s restructuring efforts will set the stage for a successful rebound or mark a continued period of turbulence for the once-dominant chipmaker.