Will Intel Layoffs Have An Impact On Real Estate?

Intel plans on laying off worldwide 10,500 employees by the middle of next year which accounts for roughly 10% of its workforce as stated in the Sacramento Business Journal. The cuts are focused on the information-technology and marketing jobs.

The Folsom offices house 7,000 employees of which 2,000 are IT employees. Management, engineering jobs, analyst, marketing, support and specialists jobs are among the cuts to generate savings of $2 billion in 2007 and $3 billion by 2008.

Intel is the largest private industry employer in Folsom as well as one of the largest in the Sacramento region. Since coming to Folsom, Intel and its employees have contributed to the community of Sacramento by supporting educational, environmental and community service organizations.

Their donations totaled more than $1 million for the United Way campaign each year. Some of the programs that benefit our community are Kid To Work Day, PC Pals and Habitat for Humanity just to name a few.

Will these layoffs have an impact on Real Estate and the economy? I would think so. So far 191 jobs have been cut this summer at the Folsom Intel facility with more to come. Some employees will be able to change to other jobs within the company but many may not. These are good folks that have home mortgages to meet. Before they go, I just want to say on behalf of the Sacramento County…thank you! Your contribution to society did not go unnoticed. I wish you all the very best!

Added:Today, October 24th, 2006 additional 146 Intel layoffs out of the 382 since July… for more updated information.

Do you know anyone that works at Intel and do you think that the layoffs will have an affect on Folsom and the surrounding areas?