Intel Israel to Lay Off Hundreds Following Global Workforce Reductions

Intel is preparing to lay off several hundred employees in Israel as part of a global downsizing initiative that aims to reduce the company’s workforce by 15%. The cuts, which could affect up to 17,000 employees worldwide, follow a company announcement in August outlining the restructuring plan. The layoffs in Israel are expected to take place after the holiday season, impacting locations in Haifa, Petah Tikva, Jerusalem, and Kiryat Gat, where Intel currently employs around 11,000 people.

The layoffs will mark the second phase of Intel’s workforce reduction strategy. Initially, the company offered voluntary retirement packages, with some employees receiving bonuses equivalent to up to 19 months' salary. Now, with voluntary departures complete, Intel is moving ahead with involuntary layoffs in several regions, including Israel.

Reports from the U.S. indicate that layoffs have already begun at Intel’s sites in Oregon, Arizona, Texas, and California, where over 2,200 employees were dismissed last week. The largest number of cuts about 1,300 occurred at the development and production site in Oregon. Other affected sites include Chandler, Arizona, with 385 layoffs, San Jose, California, with 319, and Austin, Texas, with 251.

The layoffs come as Intel faces increasing pressure to streamline its operations in a competitive semiconductor market. As of early October, 7,500 employees globally had already signed up for the voluntary retirement program. This means that the company is on track to cut at least another 7,500 positions through direct layoffs between mid-October and mid-November.

While the situation is challenging for the employees impacted by the downsizing, Intel is continuing its broader efforts to remain competitive in the chip industry, focusing on innovation while reducing overhead. The company’s restructuring plan is part of a larger strategy to enhance operational efficiency in an increasingly tough economic climate for tech companies worldwide.

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