Intel has scaled back on its recent cost-cutting measures, including car benefits for employees, following significant discontent among its Israeli workforce. Under the revised policy, employees with current company car leases will transition to a car allowance once their leases expire, while new entries into the program are temporarily suspended pending further review.
The initial cuts were part of a global austerity strategy, sparking concerns among employees—especially in Israel, where a 10 per cent compensation reduction had affected eligible employees. Following complaints over various benefits being reduced without employee input, Christy Pambianchi, Intel’s executive vice president and chief people officer, reassured the workforce in an internal email, emphasising Intel’s commitment to financial responsibility while acknowledging the importance of supporting employee welfare. “We are benchmarking all benefits against industry standards and will adjust as necessary,” Pambianchi stated.
Intel’s adjustment also coincides with the company’s recent reinstatement of complimentary coffee and tea at its Israel offices, another benefit previously removed as part of the cost-saving measures. The initial cuts were aimed at saving approximately $3 million, reflecting Intel’s efforts to maintain fiscal discipline amidst a broader restructuring strategy, which includes a global 15,000-job reduction impacting hundreds of roles in Israel.
For Intel’s Israeli employees, the benefits reductions—particularly the car programme—became a symbol of larger morale concerns, leading to vocal employee feedback about how changes were introduced without adequate consultation. As Intel navigates these adjustments, it continues balancing financial targets with the need to maintain morale, particularly in regions where employee sentiment has been most affected.
