Intel is laying off 226 people in Silicon Valley — dozens more than expected – Silicon Valley Business Journal – Silicon Valley Business Journal
Listen to this article 2 min
The semiconductor giant is laying off workers in San Jose and at its Santa Clara headquarters.
Intel Corp.’s latest layoffs in Santa Clara will be more than 60% bigger than it previously projected.
The semiconductor giant now expects to cut 175 employees based in and around its headquarters campus, Marc Nadler, the director of its corporate people movement team, said in a letter to state and local officials July 28. Previously, Intel had projected it would let go 108 Santa Clara employees.
In the letter, which the state Employment Development Department made public this week, Nadler did not explain why Intel had upped its layoff tally.
Company spokeswoman Addy Burr declined to comment Friday on why Intel now expects to cut more people than it previously projected.
In addition to Santa Clara, Intel is also laying off 51 people in San Jose, according to a separate letter Nadler sent in late June that the EDD released earlier this week.
“This planned mass layoff … is expected to be permanent,” he said in the earlier letter.
The company is also cutting workers in Folsom, where it operates a research-and-development center. There too it now expects to let go more employees than it previously forecast. Intel expects to lay off 89 workers in Folsom, according to a letter Nadler also sent July 28 and released earlier this week; its prior estimate was 67.
In Santa Clara and Folsom, Intel expects to cut the employees over a 30-day period starting at the end of this month, Nadler said in his letters. In San Jose, it plans to let go affected workers in the 14-day period beginning Aug. 31.
And more layoffs are coming in San Jose after the end of September, Nadler warned. Intel has a four-building campus at 101 Innovation Drive that it put up for sale earlier this year, giving notice then that it had plans to consolidate that operation with its Santa Clara Mission Campus.
“Should the number of further separations warrant it, we will send your office another notice at the appropriate time,” Nadler said in the letter.
The layoffs across the state are part of the semiconductor behemoth’s previously announced effort to slash costs, Burr said. Last October, CEO Pat Gelsinger said Intel planned to cut $3 billion in expenses this year. As part of that, it’s already laid off hundreds of Silicon Valley and California workers over the past 10 months.
“We are focused on identifying cost reductions and efficiency gains through multiple initiatives, including some business and function-specific workforce reductions in areas across the company,” Burr said.
In San Jose, Intel is cutting workers from its Innovation Campus. In Santa Clara, the layoffs will affect workers based at:
Among those it’s laying off in Santa Clara are 30 system-on-a-chip-design engineers, nine cloud software development engineers and an artificial intelligence software solutions engineer.
Nadler informed state officials of its wider layoffs two days after Intel reported better-than-expected second quarter results, recording a profit after posting massive losses in the two previous quarters.
Intel’s shares closed trading Friday up 17 cents a piece, or about 1%, to $32.75 each. Its stock price is up 26% in the year to date.
Local employee headcount
© 2024 American City Business Journals. All rights reserved. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement (updated April 19, 2024) and Privacy Policy (updated December 19, 2023). The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of American City Business Journals.
