Intel may lay off over 1,000 employees in Israel as global cuts begin
Intel may lay off over 1,000 employees in Israel as global cuts begin
Major workforce reductions come as Intel pushes for $10 billion in savings worldwide.
The unrest at Intel continues. After the voluntary retirement option concluded and several cost-cutting measures—such as reducing leasing vehicles and closing the Ignite accelerator program—were implemented, the company is now preparing for its most challenging phase: employee layoffs. Current estimates suggest that Intel will be forced to lay off a significant number of employees in Israel, possibly ranging from several hundred to over 1,000.
Intel has historically been sensitive to geopolitical situations and the timing of local holidays in Israel. Therefore, it would be surprising if the company initiated layoffs in the country before or during the holiday period, which start at the beginning of October and run for most of the month. Pat Gelsinger, Intel's CEO, stated that the entire process will continue until the end of the year, giving Intel's Israeli branch a window of time, even after the holidays, to begin the layoffs.
Following Intel's recent disappointing financial reports, Gelsinger emphasized the need to take significant steps to return the company to growth, even if the cost is substantial. The upcoming layoffs are part of a global effort to reduce expenses, aiming to save $10 billion, which includes the layoff or retirement of approximately 15,000 employees worldwide.
Intel currently employs around 11,700 people in Israel, with 7,800 in development and 3,900 in production. The layoffs will not be determined by country or region but by division. As a result, some divisions—particularly those outside core technology areas such as human resources and marketing—are expected to be more affected. Development and production divisions are likely to experience a lesser impact.
