Intel, the semiconductor giant, is set to lay off over 300 employees in California. The affected employees are spread across three office campuses in the state and work in areas that are crucial for Intel’s strategic growth, including AI, cloud computing, and GPU divisions. The job cuts are part of Intel’s ongoing cost-cutting efforts.
The news of the layoffs was disclosed in notices received by the California Employment Development Department on Monday and Wednesday. The terminations are scheduled to begin on August 31st, although some of the affected staff may have the opportunity to transition to new positions within the company.
Under California’s Worker Adjustment and Retraining Notification (WARN) Act, Intel is required to provide advance notice to employees impacted by office closures or mass layoffs. However, the company has not yet responded to requests for comment regarding the layoffs.
Intel has been implementing job cuts for several months now, following their CEO Pat Gelsinger’s announcement of a significant spending reduction plan last fall. This plan was put in place to navigate a decline in demand while facilitating the company’s ambitious turnaround strategy.
The layoffs will impact a total of 315 employees, with 175 at the Santa Clara headquarters, 89 in Folsom, and 51 in San Jose. In July, an additional 78 Intel employees were laid off in Santa Clara, as indicated by a separate WARN notice received by California’s labor office.
As of the end of 2022, Intel had 131,900 employees worldwide, with over 13,500 of them based in California. The roles affected by the recent layoffs are primarily in highly competitive areas that are strategically important for Intel. These include roles related to AI, cloud computing, and GPUs.
Among the impacted roles are GPU software development engineers, graphics hardware engineers, AI software engineers, as well as engineers and architects working on cloud software and solutions. The layoffs have also affected positions such as a general manager and an Intel fellow, which is the most prestigious title for a technical employee.
Additional roles impacted by the layoffs include channel marketing managers, engineering managers, hardware engineers, principal engineers, product marketing engineers, system-on-chip design engineers, system-on-chip design engineering managers, and various software roles.
While Intel’s cost-cutting measures reflect the need for efficiency, the company has also emphasized its commitment to investing in areas like leadership, technology development, and product capacity. The layoffs are aimed at achieving a best-in-class structure as Intel moves forward with its strategic goals.
In summary, Intel’s decision to lay off more than 300 employees in California has raised concerns within the industry. The impacted roles in AI, cloud computing, and GPU divisions highlight the importance of these areas for Intel’s future growth. The company’s cost-cutting measures, while necessary, indicate the need to balance investments and efficiencies in order to achieve long-term success.
