Intel confirmed its layoff plans last week, and is now providing more details. By July 15th, the chip maker plans to lay off 152 employees from its Folsom campus, while 165 jobs are going to be trimmed from Intel’s headquarter in Santa Clara.
Intel informs EDD
Over the past five years, Intel’s workforce at Folsom campus has remained almost constant at 6,000 employees, but that’s going to change now. The upcoming layoff represents a staff reduction of around 2.5%, says a report from Sacbee.
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The tech giant, which has plants across the U.S. and globally, filed a notice on June 11 with the State Employment Development Department under the “WARN Act letter,” which require big businesses to give advance notice regarding mass layoffs and closures.
In the letter to EDD, the company said that it will “provide a variety of pay and benefits to the affected employees, including two months’ pay career transition assistance and a minimum of four months of Intel-paid COBRA (health care) premiums.” The letter also mentioned that the chip maker will offer additional payment based on years of services.
In the letter, Intel also provided details on positions involved in the layoffs. The layoff positions range from data analyst to system programmer; including 16 graphics hardware engineers and 10 component design engineers. Intel also notes that the affected employees have no right to “displace or bump” other employees at the company, adding that none of the employees are represented by any trade union.
Krzanich confirmed layoffs earlier
Though Intel declined to comment on the latest developments, the layoffs are clearly part of the trimming confirmed by Intel CEO Brain Krzanich a few days ago.
The Intel CEO wrote in an internal letter to employees that: “Yes, we are implementing headcount reductions,” adding that total layoffs won’t be more than few “hundred employees in any given site or geography.” Giving reasons for the layoffs, he said the firm is eliminating jobs in the segments where the company has “have become less important.” Intel, which globally has more than 105,000 employees, employs around 16,000 staff at the two sites.
In pre-market trading today, Intel shares were down 1.34% at $31.57, and year to date, the stock is down close to 13%.