Intel lays off over 300 in California, over 700 layoffs in the state this year

(Image credit: Intel)

Intel recently notified the State of California about its plan to reduce its workforce by 311 employees across its Santa Clara and Folsom campuses in California. This decision is part of Intel's extensive cost-reduction strategy initiated by CEO Pat Gelsinger last year, aimed at mitigating the impacts of a downturn in market demand, reports CRN. Intel has confirmed the story.

The details of these job cuts were shared in two notices to the State of California’s Employment Development Department on November 3. The layoffs will affect around 76 employees at Intel's headquarters in Santa Clara and about 235 at its Folsom site. These layoffs are scheduled to begin by the end of the year.

This isn't the first time Intel has reduced its workforce in California. The company made similar cuts back in August, letting go 89 people in Folsom and 51 in San Jose. In total, Intel eliminated almost 500 roles from the Folsom R&D campus this year alone, so with 235 more, this number will grow to over 700 people.

Intel's Folsom site has served multiple research and development purposes, such as designing SSDs, graphics processors, software, and chipsets. After Intel divested its 3D NAND and SSD division in 2021, it either relocated relevant experts to Solidigm or released them from their duties. Consequently, the company is now laying off other types of experts, including GPU software specialists, which is generally unexpected. Meanwhile, the company has not yet provided any official statements regarding the roles impacted by the latest round of cuts.

The layoffs are part of Intel's larger cost-cutting plan, which CEO Pat Gelsinger introduced over a year ago. This plan was a response to a sharp decrease in demand for Intel's products, pushing the company to rethink its operations and financial strategy. Meanwhile, demand has begun to recover since the plan's inception, but it looks like the cost-cutting measures are still in place. 

"Intel is working to accelerate its strategy while reducing costs through multiple initiatives, including some business and function-specific workforce reductions in areas across the company," an Intel spokesperson told CRN.

The company reminded that it had around 13,000 employees in California and continues to invest in manufacturing in the U.S. Meanwhile, its manufacturing operations are located in other states, namely Arizona, New Mexico, and Oregon.

Anton Shilov
Freelance News Writer

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.

  • Crazyy8
    It seems Intel couldn't afford to make 14 nm processors anymore, so they layed off employees to continue production.
  • bit_user
    I hope this won't affect their graphics roadmap or execution thereof.

    Meteor Lake looks to be finally showing some payoff on their graphics investments, having resoundingly bested AMD's Radeon 780M on both Linux and Windows!
  • Neilbob
    Wouldn't surprise me if they could save just as money by firing a single Senior Vice President.
  • abufrejoval
    bit_user said:
    I hope this won't affect their graphics roadmap or execution thereof.

    Meteor Lake looks to be finally showing some payoff on their graphics investments, having resoundingly bested AMD's Radeon 780M on both Linux and Windows!
    I don't see "resoundingly bested" on Phoronix. There is a slight ~5% performance lead on synthetic graphics benchmarks across the board and the power lead might just about equal things when a real game is running on the CPU side of the SoC.

    Both of these chips won't excite desktop gamers and may just about as good as a Steam deck or similar at their resolutions, not with the 3k many of these ultrabooks have today. If you were to buy these notebooks for gaming, you're likely to be disappointed, if you're just enjoying Google Maps in 3D, there is little chance you'll never notice the difference.

    I have a Serpent Canyon NUC12 that sells near €700 again these days with VAT and includes both the internal Xe 96EU iGPU launched with Tiger Lake, as well as the 512 EU A770 mobile with 16GB GDDR6 VRAM @ 256-bit at 2GHz, roughly 4x the graphics power of these units while the i7-12700H should be very similar in terms of CPU power.

    In other words: it shows the range of what is possible with Intel iGPU and dGPU in a luggable form factor.

    For the A770m that is pretty good performance at everything 1080p (except Unreal 5). It's still ok for many things at 1440p, sometimes faster than 60Hz, too. That system would be by far a better bang for the gaming buck, unless you need a laptop.

    But on my favorite ARC Survival game the switch from Evolved (early Unreal 4) to Ascend (Unreal 5), kicked the A770 out of the competition, where only DLSS cards can survive today. XeSS hasn't doubled performance in any game I've tried, while DLSS 3 often does better than that.

    GUI type Linux graphics driver support on Intel has been rather better in my opinion than Charlie Demerjian's, but evidently that won't be the case for some time with these newest chips.

    What turns out to be really tricky is passing through the dGPU to a VM e.g. for ML compute workloads while keeping the iGPU on the host, because with Intel they both use the same driver.

    I've never really tried gaming on Linux for more than a few minutes: either performance or quality (or both) were typically too far behind Windows to make it worthwhile: but it's one of the things on my Christmas vacation to-do list to retry (mostly with an RTX 4090).

    On Linux notebooks I'd be most worried about power management and there neither Intel nor AMD have been nearly as good on Linux as on Windows. Even light desktop work on Linux could empty batteries rather quickly.

    In terms of Windows endurance my Zen 3 5800U based Lenovo ultrabook lasts a lot longer than my Alder Lake based ASUS Zenbook, while they provide roughly similar performance on CPU and GPU workloads and I don't see that change significantly with this newer generation.