Intel Accelerates California Retreat—Dozens More Bay Area Jobs Gone As Layoff Wave Spreads

Intel’s Santa Clara headquarters, with its signature blue glass facade at 2200 Mission College Boulevard, stood silent on November 30 as 45 desks sat permanently empty. This quiet reduction of 59 positions across three South Bay sites marked another chapter in the semiconductor giant’s deepening workforce contraction, filed in state records just before the holidays.

Immediate Cuts in the Bay Area

The layoffs targeted Intel’s core California operations with precision. At the main headquarters, 45 permanent positions were eliminated. An additional 11 jobs ended at the Juliette Lane facility, and three more at the Bowers Avenue office. These changes offer no recall options, leaving workers to face a sluggish tech employment landscape at year’s end.

California’s Broader Contraction

These cuts form part of a larger pattern in the state. Intel’s planned reductions in California reached over 1,900 by mid-2025, evolving from initial realignments into widespread downsizing. The Folsom campus, a key research and development center, suffered the most acute losses, with over 500 jobs cut in one wave, bringing total reductions there to more than 900 within a year.

National Layoff Wave

The reductions extend across the U.S., affecting over 5,000 positions in four states: California, Oregon, Arizona, and Texas. Oregon’s manufacturing and R&D hub in the “Silicon Forest” bore the brunt, losing nearly 2,400 roles. No region escaped the cost-saving measures, regardless of its role in Intel’s operations.

Cost-Cutting Imperative

Intel’s leadership pursues a $10 billion annual cost-reduction goal, initially outlined in late 2024 with a 15% global workforce cut—about 15,000 jobs. The process has unfolded gradually, fostering ongoing uncertainty. Under CEO Lip-Bu Tan, the company has streamlined its structure, reducing management layers from eight in some areas to foster faster decisions. Higher-paid managerial roles saw approximately 50% cuts, aiming for agility amid revenue declines.

Revenue pressures intensified the moves. From 2020 to 2023, annual revenue dropped by $24 billion, with further shortfalls in 2024 and 2025. The company suspended its shareholder dividend and faced losses in its foundry division, which posted a $7 billion deficit in one year while competing against TSMC. Intel also lagged in the AI surge, where Nvidia’s data center revenue exceeded $100 billion, as former CEO Pat Gelsinger noted the company had yet to capitalize on such trends. Competitors like AMD captured data center share and eclipsed Intel’s market value, while Intel’s GPU efforts yielded near-zero consumer market presence.

Strategic Shifts and Challenges

Global ambitions have scaled back: expansions in Germany and Poland paused, and the Ohio “Silicon Heartland” delayed to at least 2030. Internally, a late-2024 return-to-office policy, perk reductions, and frequent layoff notices eroded the company’s longstanding culture. Intel now outsources functions like marketing and support to firms such as Accenture, converting fixed costs to variable ones, though at the risk of losing expertise. Arizona’s Chandler site remains the focus, receiving investments for the “18A” process node to challenge rivals technologically.

Analysts describe the approach as essential yet limited, with one noting Intel seeks profitability through shrinkage but growth demands more. Investors remain wary, keeping stock prices low amid concerns over product delays and tech gaps.

These workforce changes underscore Intel’s high-stakes pivot. With thousands affected navigating severance and job hunts, and remaining staff bracing for further rounds into 2026, the company races to stabilize finances until new technologies materialize. Success hinges on reclaiming manufacturing edge and AI relevance in a competitive field where legacy alone no longer suffices.