Intel to lay off 235 more employees in US as it reworks strategy

Computer chip maker Intel Corporation plans to lay off around 235 employees at its research and development facility in Folsom, Sacramento County over two weeks, as part of its ongoing efforts to cut costs.

Santa Clara, California-based Intel said the layoffs, its fifth successive job-cut, will start from 31 December 2023. 

Intel has already laid off 549 employees at the Folsom campus, which comes to a tenth of the facility’s workforce. The facility is engaged in R&D activities related to SSDs, graphic processors, software, and chipsets.

The semi-conductor major confirmed the proposed job-cuts in an official statement issued to news agencies. Intel said it is efforts to reduce expenses across various business areas.

Intel, it seems, is working to branch out to related areas than remaining wholly focused in chip making.

“Intel is working to accelerate its strategy while reducing costs through multiple initiatives, including some business and function-specific workplace reductions across the company," the statement read.

Intel also indicated the chances of further job reductions in the next year as well as the semi-conductor maker explore ways of further cost-cuts. 

Intel, according to reports, could lay off up to 20 per cent  employees of its client computer and data centre divisions.

Intel employs over 13,000 people at its Santa Clara headquarters, which is about 10 per cent of its global workforce of 131,900.

It is interesting to note that Intel had proposed to lease out parts of its Bangalore office in order to pursue a "Hybrid-first" approach. It had also, reportedly, planned a lease arrangement with prospective new owners.

Reports quoted Intel India managing director Santhosh Viswanathan as saying that the company is betting on the digital transformation and Make in India initiatives to accelerate growth in India.

“If you look at market sentiment in India, there’s a lot of momentum on technology and tech spending. The entire conversation around the digital foundation is strong, and in the long run, it gives us a good appetite to grow, and grow faster in India. Further, initiatives around Make in India and building a resilient supply chain are other factors where we’re starting to see a lot of innovations," he was quoted as saying in an interview.

Intel, meanwhile, partnered with eight electronics manufacturing services companies and original design manufacturers (ODMs) in India to accelerate laptop manufacturing in the country.

The eight companies include Bhagwati Products, Dixon Technologies India, Kaynes Technology India, Optiemus Electronics, Panache Digilife, Smile Electronics, VVDN Technologies, and Syrma SGS Technology.

Intel said the collaborations could mark its first foray into laptop manufacturing.