Sony has laid off more than 100 employees at its semiconductor research and development centre in Hod Hasharon, Israel. The move has caused a 25 per cent reduction in the local workforce, which stood at around 400. The job cuts are part of Sony’s ongoing global restructuring exercise aimed at streamlining operations and improving cost efficiency.
The Hod Hasharon centre was established following Sony’s acquisition of Israeli startup Altair Semiconductor in 2016. Since then, it has served as a key hub for developing low-power wireless chips used in smart meters and other compact IoT devices. These chips are essential for enabling energy-efficient, remote communication systems—a growing area in Sony’s semiconductor portfolio.
Despite the scale of the layoffs, the Israeli facility is not being shut down. It continues to remain a strategically relevant site for Sony, where core R&D capabilities will continue. However, the downsizing indicates that Sony is preparing to reallocate resources to areas offering greater growth potential, such as AI-driven chips and advanced imaging technologies.
The current cuts are consistent with Sony’s historical approach to restructuring. Similar cycles in 2008 and 2014 saw thousands of job losses across electronics and gaming divisions, as the company responded to changing market conditions and internal profitability pressures.
Workforce reductions are taking place across the semiconductor industry. While global demand for chips remains high, growth is uneven. Companies with strong AI offerings are thriving, while others in commoditised segments are consolidating to protect margins. Even Intel and Microsoft are trimming roles despite strong long-term forecasts.
