When Intel announced major workforce cuts to certain divisions in October, 2022, it was considered a drastic move. But apparently, it was not enough, which is why in May, 2023 the company initiated another round of layoffs in its client computing group (CCG) and its data center group (DCG). Apparently, the company is now cutting its research and development personnel in California, according to a Sacramento Inno report.
Intel is laying off 140 employees in California: 89 employees are being let go at Intel's Folsom campus and 51 jobs will be cut in San Jose. There are 37 job classifications affected at the Folsom site, the primary titles among the affected positions are 'engineer' and 'architect,' the report claims. Specifically, Intel is laying off 10 GPU software development engineers, eight system software development engineers, six cloud software engineers, six product marketing engineers, and six system-on-chip design engineers.
This latest reduction marks nearly 500 positions removed from the Folsom R&D campus in the current year, following previous cuts in January, March, and May. As of early 2022, Intel had 5,300 employees in Folsom.
Intel's Folsom campus has been used for a variety of R&D activities, including development of SSDs, graphics processors, software, and even chipsets. Since Intel got rid of its 3D NAND and SSD division in 2021, by now it has either transferred appropriate specialists to Solidigm, or let them go. As a result, it is now laying off its GPU specialists, which is a bit surprising as the company's GPU software is far from perfect. Perhaps, the company wants to move certain positions to other locations with cheaper workforce, but Intel has yet to comment on the matter.
In correspondence with state officials, Intel mentioned the possibility of relocating affected employees within the company. A spokesman for Intel also noted that Intel retains over 13,000 staff in California and remains committed to investing in fundamental areas of its business, notably its manufacturing operations within the U.S. Meanwhile, the majority of Intel's U.S. production takes place in Arizona, Oregon, and New Mexico.
