In this guide7 sections
In August 2025, SoftBank agreed to buy $2 billion of Intel stock, an investment that came while Intel was cutting its workforce by about 15%. New money does not stop a layoff already underway. If you work in California tech and your job is cut, your rights are the same as any other worker’s: advance notice in many cases, full final pay on your last day, time to review a severance offer, and unemployment benefits.
Key takeaways
- Covered California employers generally must give 60 days’ written notice before a mass layoff or closure (Labor Code §1401).
- If you are 40 or older, a severance release of age claims generally gives you 45 days to consider it in a group layoff and 7 days to revoke after signing.
- Final wages, including earned vacation, are due on your last day if you are laid off (Labor Code §§201, 227.3).
What happened at Intel
On August 18, 2025, Intel and SoftBank Group announced that SoftBank would buy $2 billion of Intel common stock at $23 per share.
On July 24, 2025, Intel reported that it had completed most of the planned headcount reductions to cut its core workforce by about 15%. It said it expected to end 2025 with about 75,000 core employees. News reports in July 2025 said Intel’s WARN filings covered nearly 2,000 layoffs at its Folsom and Santa Clara sites. On August 22, 2025, the U.S. government agreed to take a 9.9% stake in Intel; we cover that deal in a separate post.
Cal-WARN: notice before a mass layoff
California’s WARN Act covers a facility that employs, or employed in the past 12 months, 75 or more people. The employer generally must give 60 days’ written notice before laying off 50 or more employees in a 30-day period, closing the facility, or relocating it 100 miles or more. Since January 1, 2026, the notice must also include CalFresh and rapid response information.
Without required notice, affected employees may recover back pay and lost benefits for up to 60 days, or half the days worked if less (§1402), and courts may award attorney’s fees (§1404). Track announced cuts on our California layoff tracker, and see our guide to Cal-WARN notice rights.
Severance offers in a tech layoff
California generally does not require severance pay. When a company offers it, the money usually comes in exchange for a release of legal claims. Several rules protect you:
- Five business days and a lawyer: A separation agreement must tell you that you may consult an attorney and give you at least five business days to decide (Gov. Code §12964.5).
- Extra time if you are 40 or older: Under federal law, a release of age discrimination claims must advise you in writing to consult an attorney, give you 21 days to consider it (45 days in a group layoff), and let you revoke within 7 days after signing. In a group layoff, the employer must also list the job titles and ages of people selected and not selected, according to the EEOC.
- Wages are not a bargaining chip: Your employer cannot make you sign a release to get wages you are already owed (Labor Code §206.5).
Example (hypothetical): Dana, a 54-year-old test engineer, receives a severance packet in a group layoff. The age list shows most engineers over 50 in her unit were selected and most under 40 were kept. She has 45 days to decide, and she can use that time to have a lawyer review possible age discrimination claims before signing.
Final pay, vacation and unemployment
If you are laid off, all final wages are due immediately, including earned and unused vacation at your final rate (Labor Code §§201, 227.3). A willfully late final check may trigger a waiting-time penalty of a day’s wages for each day late, up to 30 days (§203). See the Labor Commissioner’s final pay FAQ and our guide to final paycheck rules.
File for unemployment with EDD as soon as your work ends. EDD reviews severance and pay in lieu of notice to decide whether they affect your benefits, so report them accurately.
Before your last day, save your layoff notices, severance documents, pay stubs, equity paperwork and dated notes of any complaints you made before the layoff.
Frequently asked questions
Does a big investment in my company mean my job is safe?
Not necessarily. An investment can fund new projects while cost-cutting continues elsewhere.
Do I have to sign the severance agreement right away?
No. You get at least five business days, and longer if you are 40 or older and the release covers age claims.
What if my final check leaves out my vacation?
Earned, unused vacation must be paid with your final wages. You can file a wage claim with the Labor Commissioner or talk to a lawyer.
Can I collect unemployment if I took severance?
Often yes, but EDD decides based on the type and timing of the payments. File promptly and report what you received.
Talk to a California employment lawyer
Employees First Labor Law represents workers exclusively. We offer free virtual consultations if you were laid off or received a severance offer and want to understand your options. Contact us or call (310) 853-3461.
This article is general information about California law as of 2026, not legal advice for your situation. Reading it does not create an attorney-client relationship.
