In a statement Chipzilla said: "We are shifting our global real estate strategy to focus on fewer, more populated locations and eliminate underutilised space. This will foster greater in-person collaboration at our largest sites while also delivering cost savings for the company."

Despite these changes, Intel is not shutting down its Folsom site, a key hub with around 5,000 employees. The site, comprising seven buildings and 1.6 million square feet of office and lab space, will be used more efficiently, potentially through partial leasebacks.

Chipzilla’s decision comes as it grapples with multiple challenges, including losing its technological lead in chip production to Taiwan Semiconductor Manufacturing Co. and facing a dwindling market for its microprocessors in PCs and data centres.

Additionally, Intel has struggled to gain a foothold in the booming artificial intelligence sector dominated by Nvidia.

Sales have tumbled by a third since 2021, and the company reported a staggering nearly $17 billion loss last quarter. Despite a revised optimistic forecast for the year's end, Intel has slashed 15,000 jobs this fall, aiming to cut $10 billion in costs. These cuts impacted 272 employees in Folsom and 1,300 in Oregon, where Intel's workforce numbered about 23,000 at the start of the year.

Chipzilla’s efforts to reduce its property holdings are global, focusing on consolidating operations at its Santa Clara, California, headquarters.

Hawthorn Farm, the smallest of Intel’s four Oregon campuses, could see changes as the company seeks to optimise its real estate. While Intel has encouraged employees to relocate to more densely occupied sites, it has no immediate plans to sell the property.

The campus, which began operating in 1978, focuses on research for motherboard technology and recently saw 124 layoffs.