Intel Corp. continues to reduce staff locally, with a new cut of 89 employees coming to its campus in Folsom and 51 jobs to be cut at offices in San Jose.
The cuts reported to state employment officials this week will take effect at the end of the month.
These new cuts hit hard in the research and development workforce at Intel, rather than marketing, sales or management. The majority of positions affected include the titles "engineer" or "architect."
The new cuts in Folsom include 37 job classifications. The largest cuts are 10 GPU software development engineers, eight system software development engineers, and six each of cloud software engineers, product marketing engineers and System on a Chip, or "SoC," design engineers.
Intel (Nasdaq: INTC) said in its letter to employment officials that some of the impacted employees could find other positions inside the company.
"As discussed on prior earnings calls, Intel is working to accelerate its strategy while reducing costs," said spokesperson Addy Burr, via email. "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."
Burr said Intel still has more than 13,000 employees in California and the company will continue to invest in areas core to its business, including its U.S.-based manufacturing operations. Most of Intel's domestic manufacturing occurs in Arizona and Oregon.
The Santa Clara-based chipmaker has been struggling over the last year as slowing personal computer sales have hit its chip business. Global PC shipments fell 29% in the first quarter year-over-year, industry tracker International Data Corp. reported in April.
Intel is one of the region's largest tech industry employers. The new cuts in Folsom bring the company to nearly 500 positions eliminated at the Folsom research and development campus this year.
In May, Intel cut 62 employees at its Folsom Campus, and that was Intel’s third series of cuts in a span of five months. Intel also cut more than 340 positions in Folsom effective in January and March.
In early 2022, Intel reported that it had 5,300 employees in Folsom, but that was before it cut some 400 positions jobs at that site.
