Chipmaker Intel announces plans to sell, lease back Folsom site in effort to cut costs
FOLSOM – Chipmaker Intel Corp. announced plans to sell and lease back its Folsom site nearly a month after the technology giant said it would be laying off nearly 300 employees at the site in November.
Folsom is one of the fastest-growing cities in California and tech jobs are a big reason for that growth.
However, in October, Intel announced that it would begin to lay off 272 employees at the Folsom site on Nov. 12.
Now, the tech giant says it will sell and partially lease back space at its Folsom location.
"We are shifting our global real estate strategy to focus on fewer, more populated locations and eliminate underutilized space," an Intel spokesperson said in a statement to CBS13. "This approach will foster greater in-person collaboration at our largest sites while also delivering cost savings for the company. We are exploring more cost-effective space usage options for Intel's Folsom site, including a partial lease back of our current space."
The Santa Clara-based company said in August that it would also suspend its stock dividend as part of a plan to cut costs as well as cut 15% of its massive workforce.
The Folsom location is 1.5 million square feet with seven buildings with offices, test floors and lab space.