Intel Israel has launched a significant new wave of layoffs, now impacting its Kiryat Gat factory for the first time, alongside continued cuts at its R&D centers in Haifa and Petah Tikva.
Estimates suggest several hundred employees are being let go as part of Intel’s broader global cost-cutting campaign. The Kiryat Gat plant, once considered a cornerstone of Intel’s manufacturing capacity and recipient of billions in Israeli government grants, is now producing older-generation 7nm and 10nm chips and risks closure without further investment.
Intel, which employs about 9,300 people in Israel (including 4,000 in Kiryat Gat), is offering affected employees up to 19 months’ salary in severance — but only if they do not challenge their dismissal. Workers who request a hearing to contest termination risk receiving only the minimum severance mandated by law.
These cuts follow a series of layoffs that began in 2023, including over 1,000 jobs lost previously in Israel, and are part of a broader restructuring plan that could ultimately eliminate another 20,000 jobs worldwide.
Intel has also shut down units like Intel Ignite and Granulate in Israel, part of an ongoing overhaul under CEO Lip-bu Tan’s leadership to regain competitiveness in global chipmaking.
Links:
Intel Israel begins layoffs at Kiryat Gat
https://www.calcalistech.com/ctechnews/article/x1d3e8dw6
Intel’s severance package details and employee hearing risks
https://www.calcalistech.com/ctechnews/article/hdfq9fnje