[News] Intel Israel Reportedly Sees Departure of Over 1,000 Employees amid Major Layoffs

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Following the massive layoff in Oregon, U.S., which impacted around 1,300 employees, Intel has also started layoffs in Israel. According to a report by local media outlet Globes, over 1,000 Israeli employees have left Intel, the country’s largest private employer.

Layoffs to Bring Intel Israel’s Workforce below 10,000

According to Intel, the company plans to deliver USD 10 billion in cost savings in 2025, which includes reducing its head count by roughly 15,000 roles, or 15% of global workforce.

Citing former employees, Globes notes that approximately 15% to 20% of Intel’s 7,000 development staff in Israel have been affected, totaling an estimated 1,000 to 1,400 employees, including both voluntary and involuntary departures.

According to the report, the layoff is expected to impact all of Intel’s development centers across Israel, including Haifa, Petah Tikva, and Jerusalem. On the other hand, the operations at the Kiryat Gat production facility, employing 4,000 people, remain unaffected.

Nevertheless, Intel aimed to protect core processor operations, opting instead to scale back projects in wireless and cellular communications, as well as video card development, including those used in AI, the report suggests.

It is worth noting that this reduction will likely bring Intel Israel’s workforce below 10,000 employees for the first time in a decade, according to Globes. In 2015, Intel Israel reportedly crossed the 10,000-employee threshold, reaching 11,000 at its peak.

The Globes notes that NVIDIA has over 4,000 employees in Israel, while Microsoft Israel has more than 3,000, and Apple and Google have over 2,000 employees, respectively. Even after the layoff lately, the scale of Intel Israel is still larger than other tech giants.

A previous report from Globes pointed out that many former employees from the company in Israel have made the move to NVIDIA. According to updates on LinkedIn, at least 30 employees left Intel in 2024 to join NVIDIA’s offices in Yokneam and Tel Aviv, noted Globes, while more may be on the road, with between 60 and 90 former Intel employees joining in recent months.

Free Coffee Found its Way Back

On the other hand, remaining employees at Intel Israel may be a bit relieved, but not happier in essence. They described the layoff process as prolonged and opaque, which contrasts with the typically swift layoffs seen at other tech companies, according to Globes.

Announced in August, the layoffs reportedly unfolded gradually through October and November and are expected to conclude only in December. A source cited by the report indicated that many managers were aware of who was slated for layoff a month in advance but they were restricted from sharing the information.

The prolonged restructuring at Intel Israel also involved deteriorating employment conditions, including the cancellation of the company’s car leasing program, costing some employees around NIS 4,000 monthly, according to Globes.

In addition, Intel is said to have abruptly halted free coffee stations in its offices, sparking widespread criticism and social media backlash.

Now, according to the report, it is indicated that Intel has reversed both decisions on coffee and car leasing. However, new hires will be offered private leasing options, unfunded by Intel, aligning with common practices in the tech industry today.

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(Photo credit: Intel)