Intel is set to eliminate 58 more jobs at its Folsom, California campus by the end of March. This move is part of its broader effort to reduce costs by $10 billion by 2025.
The latest layoffs add to the 1,000+ positions already cut at the site since early 2023. Intel’s workforce reductions highlight its ongoing struggle to regain competitiveness in the highly-contested semiconductor market.
Since late 2022, Intel has reduced its global workforce by 23,000 employees. In 2024 alone, the company cut 16,000 positions as it restructured operations. The Folsom campus, a key research and development hub, has been heavily impacted. Intel faces growing challenges from competitors such as Nvidia and AMD, which makes cost cutting the need of the hour.
Intel is also scaling back its physical presence in Folsom. In November, the company announced plans to sell its real estate holdings in the area while leasing back part of the space. This is in line with a wider trend in the tech space, with firms reducing office footprints due to shifting economic conditions and changing workplace strategies.
Despite aggressive cost cutting, Intel continues to face efficiency challenges. The company now employs approximately 1.08 lakh people, returning to its 2018 workforce size, but with significantly lower revenue levels.
Intel remains focused on advancing semiconductor manufacturing to reclaim its leadership in the chip production space. However, with industry competition intensifying, the company faces an uphill battle.
Employees at the Folsom site now face growing uncertainty. While Intel’s restructuring may strengthen its long-term stability, the short-term impact on jobs and innovation remains a pressing concern. The coming months will be crucial in determining whether Intel’s strategy can revive its market position or lead to further instability.
