Intel Job Cuts More than Doubling in California, Employees ‘Walking on Eggshells’

Intel is increasing the number of job cuts it had planned for California from 201 to 544 workers.

That’s according to Worker Adjustment and Retraining Notification (WARN) notices with the California Employment Development Department.

Intel is cutting 201 workers at its headquarters in Santa Clara. That’s up from 90. Expect the layoffs to be complete by the end of this month.

In addition, Intel originally planned to cut 111 employees at its Folsom facility. That number has since climbed to 343. The first separations should be during a 14-day period starting March 15. The company will release more workers after that.

The layoffs are permanent. It is possible that some impacted employees may find comparable roles within Intel and remain employed.

No employees will have the right to bump or displace other employees. In addition, there is no union representing the affected employees.

Intel sent us the following statement:

“As discussed on our Q3 earnings call, Intel 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 have more than 13,000 employees in California and 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 Job Cuts Part of Expense Reduction Plan

In November, Intel announced a plan to slash operational expenses by up to $10 billion within three years, including $3 billion this year. The cost-reduction plan includes layoffs.

Intel’s Pat Gelsinger

Pat Gelsinger, Intel’s CEO, announced the spending cuts during the company’s third-quarter earnings call. In addition, Intel will reduce $2 billion in capital expenditures.

Gelsinger said layoffs are necessary to “optimize headcount,” which he said will add $2 billion more in savings.

Workers took to TheLayoff.com to express their frustration.

“Searched for Intel layoffs posts in LinkedIn and saw a huge number of posts ranging from yesterday [until the] previous week,” said one employee. “No one’s spared I guess irrespective of their domain.”

Another worker said “people here are walking on eggshells in fear of becoming a target and losing their job.”

“This kind of uncertainty and knowing that employee’s hard work does not mean much creates mistrust and a very bad atmosphere in the company,” the worker said. “Not giving the reasons why a person was laid off seems to be nothing unusual for this company. Anyone else who was a good performer and laid off without being given any reason why?”