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.
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Anton Shilov is a Freelance News Writer at Tom’s Hardware US. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.
Cutting staff while simultaneously having to pay an over $300 million dollar breakup fee to Tower.Reply
And getting billions of dollars from the Chips act. If ChatGPT could develop processors I bet Intel and other companies would cut their engineer staff significantly.dehjomz said:Cutting staff while simultaneously having to pay an over $300 million dollar breakup fee to Tower.
When big Corps start cutting their R&D staff, unless it's literally incubation labs or some sort, it always paints a terrible picture to me: they're looking to mainstream and work on minimal "new" things and stick to whatever patented things they have. This usually smells like transition (see IBM).Reply
That being said, this amount of people out of... What is it? 100K employees? It's not really significant enough to make any conclusions like that, but it still is sad to read about good talent being let go.
Remember, the US economy is "resilient"? Hiring is still going strong? Everyday I am seeing news of companies letting people go. Kind of contradictory.Reply
Those two things are not related. The Chips Act money has to be used for the construction of their Ohio Fab as per the requirements in the Chips Act. The money can't be used for general R&D, operations, stock buybacks, break up fees, etc. (assuming the gov follows through with verifying the funds uses).Deleted member 431422 said:And getting billions of dollars from the Chips act. If ChatGPT could develop processors I bet Intel and other companies would cut their engineer staff significantly.
Talk of the job market being "resilient" is based on overall statistics on the unemployment rate (which we know is underreported) and the number of unfilled positions (which I'm sure is overreported). It does not mean that hiring is equally strong in all sectors, or say anything about their layoff or turnover rates.watzupken said:Remember, the US economy is "resilient"? Hiring is still going strong? Everyday I am seeing news of companies letting people go. Kind of contradictory.
Wishing the best to all affected. I hope this isn't simply an off-shoring exercise, but that's exactly the type of thing these corporations do.Reply
One thing to consider is that having to provide health insurance for employees is a cost they don't have to bear almost anywhere else in the world. That further amplifies the cost disparities between US-based employees and those in other countries.
Intel still can't mass produce in quantity anything smaller than 10nm and they're cutting staff?Reply