After Layoffs, Intel Looking To Sell Campuses As Part Of Cost-Cutting Measures

The chipmaker is also evaluating the future of its 50-acre Hawthorn Farm property in Hillsboro, Oregon, and looking into cutting down the footprint of its headquarters in Silicon Valley

Intel is looking into offloading some of its real estate holdings as the chipmaker tries to execute cost-cutting measures. The company is planning to sell its 150-acre Folsom campus and looking into divesting other property holdings as well.

This development follows the company announcing job cuts for 15,000 employees, reported The Times of India. The semiconductor player intends to continue operations at its Folsom facility near Sacramento, which currently includes 5,000 employees across seven buildings totalling 1.6 million square feet of office and laboratory space.

However, the tech giant is also looking into a sale-leaseback arrangement for the property. In its announcement, the company said, “We are exploring more cost-effective space usage options for Intel’s Folsom site, including a partial lease back of our current space.”

The chipmaker is also evaluating the future of its 50-acre Hawthorn Farm property in Hillsboro, Oregon, and looking into cutting down the footprint of its headquarters in Silicon Valley.

The company has been undergoing a challenging period lately. Intel’s revenue declined to $54 billion in 2023 under CEO Pat Gelsinger, decreasing to almost one-third below 2021 levels.

The property sales are a part of the company’s efforts to restructure as the tech giant tries to deal with several challenges such as increasing competition from Taiwan Semiconductor Manufacturing Co and declingin demand for microprocessors in both PC and data centre markets.

“We are shifting our global real estate strategy to focus on fewer, more populated locations and eliminate underutilised space, the firm said. 

Notably, Intel announced in August that it will lay off more than 15,000 employees to manage the losses being experienced by the firm. It also said that it plans to slash the R&D and marketing budgets by billions annually through 2026.