Intel, one of the world’s largest semiconductor chip manufacturers, has reportedly initiated significant job cuts this week, impacting employees across operations in both the United States and Israel. The workforce reductions commenced on Monday, July 7th, according to reports from U.S.-based Oregon Live and Israeli business news outlet CTech.
Widespread Impact in the United States
Oregon Live reports that the cuts starting July 7th are widespread within the company’s U.S. operations. The extent of the layoffs is expected to affect thousands of workers, though Intel has not yet publicly disclosed the total number of roles being eliminated or the anticipated duration of this process.
These recent actions follow previous indications of workforce adjustments within the company. Last month, Intel had already informed employees within its crucial Foundry unit about plans to reduce the workforce by approximately 15% to 20%. This earlier announced reduction was expected to result in the elimination of several thousand jobs within that specific division.
Beyond the Foundry unit, the company is also reportedly planning to dismantle its automotive technology division and lay off the majority of the staff assigned to that segment.
These current cuts build upon previous reductions made by Intel. Approximately 3,000 jobs were eliminated in Oregon alone last year. Reports suggest that the scale of the current round of layoffs in Oregon is expected to be comparable to last year’s figures, indicating a significant impact on the company’s largest manufacturing hub in the United States.
Adding to the U.S. impact, Intel recently filed a notification with California officials detailing plans to lay off just over 100 employees at its Silicon Valley headquarters, signaling that the reductions are affecting various facets of the company’s U.S. structure.
Cuts Extend to Israel, Kiryat Gat Facility Targeted
Significantly, for the first time, these reported job cuts are said to be extending to Intel’s facilities in Israel. Previously, Israeli operations, particularly the large manufacturing site, had often been spared from company-wide reductions. However, the Kiryat Gat facility in southern Israel is now identified as a key target in this phase of workforce adjustments.
CTech estimates that several hundred employees within Intel Israel will be affected during this initial phase of layoffs. Intel’s operations in Israel are substantial, employing a total of around 9,300 people across various sites. The Kiryat Gat plant alone is a major employer in the region, housing approximately 4,000 of these workers.
Uncertain Future for Kiryat Gat Plant
The Kiryat Gat facility’s inclusion in the layoff plans signals a potential shift in Intel’s global manufacturing strategy and the future of the site itself. While the plant has historically been a recipient of significant government grants from Israel and was often shielded from previous downsizing efforts, it is now reportedly under review for a possible closure, as indicated by reporting from Israeli news site ynet.
The potential consideration of closure is linked to the plant’s current operational status. Production at the Kiryat Gat facility is reportedly declining due to its primary reliance on older fabrication technologies, specifically 7nm and 10nm processes. While the plant is reportedly equipped to support more advanced manufacturing processes than it currently utilizes for high-volume production, its current output is dominated by these less advanced nodes.
The review for potential closure underscores challenges related to optimizing Intel’s global manufacturing footprint and transitioning towards more advanced chip fabrication technologies. The fate of the Kiryat Gat plant, a cornerstone of Intel’s manufacturing outside the U.S. and a significant component of the Israeli tech ecosystem, remains uncertain as the company navigates this restructuring period.
Intel has not yet issued a formal statement detailing the overall scope, locations, or specific reasoning behind the widespread job cuts beyond the previously announced Foundry unit reductions.
