Since the end of 2022, Intel's global workforce has decreased by 23000, including approximately 16000 positions cut in 2024.

  Folsom's layoffs are part of Intel's broader efforts to cut $10 billion in costs by 2025. In November 2024, the company announced that it would sell its Folsom real estate and lease back some space, further indicating its downsizing. Intel once had a workforce of over 100000 employees and reported 108900 employees by the end of 2024- essentially returning to the employment level of 2018, despite a $18 billion decrease in annual revenue.

   The layoffs come at a time when Intel is striving to regain a competitive advantage in the semiconductor industry, facing challenges such as declining revenue, shrinking market share, and executing its transformation strategy. In 2024, Intel's revenue was $53.1 billion, lower than the previous year's $54.2 billion, and its stock price plummeted by 60% within a year.

Despite layoffs and cost cutting measures, Intel's prospects remain uncertain. The company is still searching for a new CEO to replace Kissinger, who will resign in December 2024. The latest news suggests that Caulfield, former CEO of GlobalFoundries, may take over as CEO of Intel.

   Although Intel has been reducing employee bonuses, it continues to provide some financial support, especially in Israel, where employees receive an annual bonus of 0.8 months' salary - significantly lower than in previous years, but it is still rare to receive bonuses during periods of financial stress. The company also spent $900 million on restructuring in 2024, indicating the high costs involved in its transformation efforts.