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Intel Laying Off Over 500 In California, Says More To Come

Joseph F. Kovar

Intel, according to Worker Adjustment and Retraining Notification in California, increased the number of layoffs it had planned last year, and added a notice of a third new round of layoffs, while telling the state that it expected more layoffs to come.

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More tech layoffs are in the works as Intel this week filed notice that it plans to lay off 544 employees in the state of California.

The layoffs are part of an Intel “right-sizing” plan laid out in October to cut $3 billion in 2023 and as much as $10 billion in costs by 2025 in moves that Intel CEO Pat Gelsinger had already said would impact headcount.

[Related: Tech Layoffs In 2022: 23 Companies Slashing Their Workforce]

Intel this week filed three layoff notices with the California Employment Development Department (EDD), as required by the California Worker Adjustment and Retraining Notification, or WARN, Act. The California WARN Act requires covered employers to provide advance notice to employees affected by office closures or mass layoffs.

The California EDD posted three WARN notices based on letters from Intel on January 18.

In the first WARN letter, dated January 11, Intel followed up to a December 2, 2022 notification that 90 employees were being laid of from Intel’s Mission Campus in Santa Clara, Calif. by February 28, but the actual number to be laid off is now expected to reach 201 people. However, some of those employees may find comparable roles in Intel and remain employed, Intel wrote.

Another WARN letter, also dated January 11, informed the California EDD that a planned layoff of 111 employees in Folsom, Calif. was being increased to 176 employees.

In the third letter, dated January 13, Intel unveiled plans to lay off an additional set of workers, approximately 167 people, in Folsom, Calif., and said it anticipates further layoffs at that location after a 30-day period starting March 15.

Under the California WARN Act, any employer with 75 or more full-time and part-time employees in the last 12 months has to announce layoffs of 50 or more people within a 30-day period, or any number of employees if a facility is closed.

All three letters, which were reviewed by CRN, were signed by Marc Nadler, the director of Intel’s corporate people movement team.

Intel in an emailed statement said that the company, as discussed during its third fiscal quarter financial call, is working to accelerate its strategy while navigating a challenging macro-economic environment.

“We are focused on identifying cost reductions and efficiency gains through multiple initiatives, including some business and function-specific workforce reductions in areas across the company. We continue to invest in areas core to our business, including our U.S.-based manufacturing operations, to ensure we are well-positioned for long-term growth. These are difficult decisions, and we are committed to treating impacted employees with dignity and respect,” Intel said.

The Intel layoffs come as part of a wave of tech layoffs in the last several months.

Just this week alone, Google Cloud parent Alphabet said it plans to lay off over 12,000 people, 8X8 said it would lay off 7 percent of its staff, JumpCloud plans to lay off 100 people, and Microsoft confirmed 10,000 layoffs are coming.

Learn More: CPUs-GPUs
Joseph F. Kovar

Joseph F. Kovar is a senior editor and reporter for the storage and the non-tech-focused channel beats for CRN. He keeps readers abreast of the latest issues related to such areas as data life-cycle, business continuity and disaster recovery, and data centers, along with related services and software, while highlighting some of the key trends that impact the IT channel overall. He can be reached at jkovar@thechannelcompany.com.

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