Intel intends to further layoffs, Cut R&D staff to reduce costs

Following the release of Intel’s Q3 financial report in 2022, CEO Pat Gelsinger announced an initiative focused on cost-cutting and efficiency enhancements. This plan incorporated significant layoffs, affecting thousands of employees, with sales and marketing departments bearing the brunt of these changes. Intel aspired to address the deteriorating PC market through this strategic reduction in expenditure.

While Intel had previously streamlined its organizational structure, it appeared insufficient. Consequently, they initiated multiple rounds of layoffs in January, March, and May of this year. According to TomsHardware, Intel is currently embarking on another phase of workforce reduction, primarily targeting research and development personnel in California. The roles predominantly impacted are those of “engineers” and “architects”, with 89 cuts slated for the Folsom campus and 51 in the San Jose facility.

It’s understood that, after successive waves of layoffs, nearly 500 individuals have been let go from the Folsom site, which had a staff count of approximately 5,300 at the beginning of 2022. Historically, Intel’s R&D facilities at this location were primarily engaged in the development of solid-state drives, graphics processors, support software, and various chipset technologies. With the storage business division’s sale to Solidigm, employees specialized in solid-state drive technologies either transitioned to Solidigm or departed from the company. Intriguingly, among those currently being laid off are employees involved in graphics processor development. Given Intel’s ongoing challenges in the GPU domain, both hardware and software, it’s plausible they intend to relocate certain positions to regions with lower labor costs, though official commentary on this remains pending.

Intel asserts that they still retain over 13,000 employees in California and remain committed to investing in their foundational business domains.