Intel Folsom hit with 272 layoffs

More than 200 people who work at Folsom Intel received bad but perhaps not surprising news recently, that they are going to lose their jobs. Earlier this week, the tech giant revealed plans to cut 272 workers in Folsom as of Nov. 15. The company alerted the state of California of its plans, as it is required to do, according to a Worker Adjustment and Retraining Notification notice. Addy Burr, a communications manager for Intel, told the Folsom Telegraph these job cuts were a difficult choice. "As part of the broad-based cost savings plan we announced in August, we are making the hard but necessary decisions to reduce the size of our workforce. These are the most difficult decisions we ever make, and we are treating people with care and respect. These changes support our strategy to become a leaner, simpler and more agile company as we position Intel for long-term sustainable growth," said Burr. Before this week's layoffs, Burr said Intel offered eligible employees an enhanced retirement package as an option in an effort to make the process as painless as possible. Those who are losing their jobs were given severance packages of nine weeks of pay and benefits. There are more layoffs reported elsewhere: At the San Jose Intel campus, 47 people are losing their jobs. The job loss count is more dramatic in Oregon, where media outlets report 1,300 people will be laid off; also, 385 in Arizona and 251 in Texas. There are no promises that more layoffs aren't in the future, but the company is hopeful these cutbacks will be enough to better position themselves for long-term survival and growth. Talk of impending layoffs began after Intel's revenue declined by 20 percent at the end of 2022. The company also suffered its largest loss in its history with $2.77 billion in computer chip earnings. Intel officials made the difficult announcement it would have to cut 15,000 jobs. Last year, 800 jobs were cut in Folsom, according to a previous story by The Folsom Telegraph. Intel CEO Pat Gelsinger said slowdowns in the personal computer market impacted the company's bottom line but analysts say a top competitor in Taiwan, a semiconductor manufacturing company, now makes the vast majority of the world's advanced chips and Intel simply fell behind. Layoffs began after the tech giant revealed its plan to reduce costs by $10 billion by the year 2025, which it has attempted to do through not just layoffs but reduced hours, pay and other efforts.