With this move, Intel hopes to optimise real estate usage and in turn reduce costs.
Intel is shifting its global real estate strategy to focus on fewer, more populated locations.
These moves align with Intel’s broader strategy which was shared by CEO Pat Gelsinger.
Intel has made it to the headlines again and for the same reason: cost cutting. The company has announced its plans to sell part of its campus on Prairie City Road in Folsom, California. This is also a part of its $10 billion cost-cutting strategy. Intel aims to lease out only the necessary portions of the site. With this move, Intel hopes to optimise real estate usage and in turn reduce costs.
Confirming the same, Intel said in a statement that it is shifting its global real estate strategy to focus on fewer, more populated locations. For the Folsom campus, Intel is considering a partial leaseback to retain the space it requires for operations.
Prior to this, Intel had laid off employees at the Folsom site. The company had announced that it plans to lay off 272 employees within 60 days. And this wasn’t a standalone layoff. Approximately 898 employees were let go from the same campus between December 2022 and December 2023.
These moves align with Intel’s broader strategy which was shared by CEO Pat Gelsinger. He had shared plans to reduce Intel’s workforce by 15%, which would be equivalent to around 15,000 employees by 2025. The company had said, “These are the most difficult decisions we ever make, and we are treating people with care and respect.”
The reduction in real estate and workforce by Intel clearly indicates that the challenges at Intel are still not under control. As per experts, the cost-cutting measures are likely driven by shareholder demands for improved margins, revenues, and earnings. Even though Intel is trying to meet these expectations, its stock remains significantly lower than its peak of $70 in August 2000. As of Monday morning, the Intel stocks cost $25.
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Mustafa Khan
Mustafa is new on the block and is a tech geek who is currently working with Digit as a News Writer. He tests the new gadgets that come on board and writes for the news desk. He has found his way with words and you can count on him when in need of tech advice. No judgement. He is based out of Delhi, he’s your person for good photos, good food recommendations, and to know about anything GenZ. View Full Profile
