According to CRN, Intel recently revealed plans to lay off more than 300 people in three office parks in California, which will be part of Intel’s cost-cutting program.
The layoffs are said to include 30 positions in the AI, cloud computing and GPU departments, which are highly competitive areas of “strategic importance” to Intel. Intel said in the announcement that the company plans to begin laying off employees on August 31, and some of the affected employees may be transferred to new positions.
In detail, the layoffs affect 315 employees, 175 at its Santa Clara headquarters, 89 in Folsom and 51 in San Jose. According to a local regulatory filing in January, Intel had 131,900 employees by the end of 2022, and according to Intel’s website, more than 13,500 employees work in California.
It was previously reported that in late October last year, Intel CEO Pat Gelsinger said in an interview that the company will begin targeted layoffs and other adjustments, including reducing factory hours, in response to the economic downturn.
He did not specify how many of Intel’s more than 120,000 employees would be affected. “We are aggressively addressing costs and improving efficiencies across the business.”
Intel said it is working to achieve $3 billion in cost reductions in 2023 and increase annualized cost reductions and efficiency gains to $8 billion to $10 billion by the end of 2025. In this way, Intel will cut costs by up to $13 billion over three years. Intel booked $664 million in restructuring expenses in the third quarter to reflect the initial cost reductions.