Intel is preparing for a major phase of layoffs as part of its ongoing global cost-cutting efforts. These upcomingjob cuts are expected to significantly impact Intel’s workforce in Israel, with estimates suggesting that the company may reduce its headcount by several hundred to over 1,000 employees.
This move follows a series of recent measures, including the completion of a voluntary-retirement programme, reductions in leasing company vehicles, and the shutdown of its Ignite accelerator programme.
The decision to implement layoffs in Israel comes at a sensitive time, given the country’s geopolitical environment and local holiday calendar. Intel has been known to be cautious about timing such decisions around significant events in its various operational regions. Therefore, it is unlikely that the layoffs will begin in Israel before or during the holiday period, which starts in early October and continues for most of the month. The company is expected to wait until after the holidays to initiate the layoffs in its Israeli offices.
These job cuts are a part of a broader global strategy to cut costs by $10 billion, a plan that involves reducing the overall workforce by about 15,000 employees worldwide. These layoffs are seen as a necessary step to address the company’s recent financial challenges and drive a return to growth, despite the significant impact on the workforce.
Intel’s restructuring strategy will not be based on country or regional considerations but will focus on divisions across the organisation. As a result, some departments are expected to be more affected than others. For instance, divisions outside the core technology areas, such as human resources and marketing, are anticipated to face a higher number of job cuts, while departments involved in development and production are likely to experience a lesser impact.
Intel’s Israeli branch currently employs around 11,700 people, with 7,800 in development roles and 3,900 in production roles.
