A week after laying off several hundred employees in the Sacramento area, Intel has announced plans to sell its Folsom campus. The company stated that this move is part of a broader effort to reduce unused space and promote greater in-person collaboration across its global operations.
Intel is planning selling its 150-acre Folsom campus and reviewing other property holdings as the struggling chipmaker intensifies cost-cutting measures following recent layoffs of 15,000 employees.
From Intel inside to outside 😣
— nikunj shah 🇮🇳 (@niku1630) November 26, 2024
Intel will lease back only the space it needs at the Folsom site on Prairie City Road, aligning with a cost-saving strategy. In an official statement, Intel explained, “We are shifting our global real estate strategy to focus on fewer, more densely populated locations while eliminating underutilized space. This will enhance in-person collaboration at our largest sites and reduce costs. We are also exploring more cost-effective space usage options for the Folsom campus, including partial leasebacks.”
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Notably, last month, Intel revealed plans to lay off 272 employees at its Folsom site within 60 days. This follows the layoff of approximately 898 employees from the Folsom campus between December 2022 and December 2023.
The company emphasized that these decisions, though challenging, are part of its strategy to become a leaner, more agile organization focused on long-term sustainable growth, while ensuring employees are treated with care and respect.
Intel is pivoting their business focus towards manufacturing Vs engineering chips. I’m afraid the Folsom campus is likely doomed.
— Geoff Black (@SactoGeoff) November 25, 2024
For the unversed, Intel CEO Pat Gelsinger announced that the company plans to cut its workforce by 15%, or about 15,000 jobs, by 2025 as part of a strategy to achieve $10 billion in cost savings.
Additionally, Intel has brought back free coffee and tea at its work sites, a perk that was eliminated last summer as part of the company’s annual cost-cutting initiative, according to a report by The Oregonian. This move is seen as a small but meaningful effort to boost employee morale following recent budget reductions.
In a message to staff on its internal platform, Intel acknowledged ongoing cost challenges but emphasized the importance of small comforts in daily routines. The company described the return of free coffee and tea as a modest but meaningful effort to support workplace culture. The report added that free fruit, once a common employee perk, will not make a return.
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