Intel Corp. is cutting more positions at its Folsom research and development campus.
The newest cuts of 58 employees will begin Oct. 15 and will bring the cuts at the local campus to 549 just this year.
“Intel is working to accelerate its strategy while reducing costs,” said a statement from Addy Burr, Intel spokesperson, via email.
Intel is still reacting to a drop in demand for its chips that saw its revenue decline and the company take its largest quarterly loss in history earlier this year.
In its statement, Intel (Nasdaq: INTC) said it's still identifying cost reductions and efficiency gains "through multiple initiatives, including some business and function-specific workforce reductions in areas across the company."
Even after the cuts, the Santa Clara-based company will still have more than 13,000 employees in California, and the company will continue to invest in core businesses to ensure it's positioned for long-term growth, Burr said.
The Folsom campus includes 1.5 million square feet of office, test floor and lab space. It is one of the company’s largest sites.
The 58 positions cut from its campus in Folsom in October follow a cut of 89 positions in August in Folsom. That August cut also included the elimination of 51 more positions at an Intel office in San Jose.
The new Intel cuts were disclosed to Sacramento County in late August and are effective Oct. 15, according to the California Employment Development Department. Intel said the layoff is expected to be permanent, in its letter to the county.
Prior to the cuts coming Oct. 15, Intel eliminated 491 positions in Folsom so far this year.
In May, Intel cut 62 employees at Folsom, in what was the company's third series of cuts in a span of five months at that location. Intel also cut more than 340 positions in Folsom effective in January and March.
As of August, Intel still had 5,182 employees in Folsom, according to Business Journal research, making it the largest local tech employer.
Intel began cutting after it watched revenue decline 20% from $79 billion in 2021 to $63.1 billion last year.
The company reported a first-quarter loss of $2.77 billion on lower chip revenue. It was the largest loss ever for a quarterly period for the chip giant, and it compared to a profit of $8.11 billion in the first quarter of 2022.
In the second quarter, Intel posted revenue of $12.9 billion, down 15% from the previous year period. It earned net income of $1.47 billion that quarter, compared with a loss of $454 million the year earlier.
Slowing personal computer sales have hit Intel's chip business. Global PC shipments fell 29% in the first quarter year-over-year, according to industry tracker International Data Corp.
Intel's losses in the fourth quarter of 2022 and in the first quarter of this year got it focused on turning around its performance, which included cost cutting to reduce expenses by $3 billion this year.
