Intel is expected to lay off up to 20% of its production employees according to reports, including in “Oregon Live,” which closely covers the chipmaker. Intel VP manufacturing Naga Chandrasekaran wrote to employees, ” “These are difficult actions, but essential to meet our affordability challenges and the current financial position of the company.” Chandrasekaran added that the company will cut between 15% and 20% of its manufacturing workforce starting July.
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As of the end of 2024, Intel had 4,000 employees at its manufacturing plant in Kiryat Gat, although this number could have decreased. In any event as many as 800 employees in Israel could be set to lose their jobs. Overall Intel has 9,350 employees in Israel in development centers and production fabs.
“Oregon Live” estimates that the global move will cut about 10,000 jobs from the company’s current 100,000-109,000 employees, after the Intel shed 17,000 jobs last year. Intel CEO Lip-Bu Tan, who was appointed in March, said several times on taking office that he was working on a move to flatten the company’s structure to reduce the number of middle managers and simplify bureaucratic processes.
Intel still employs more workers than rival manufacturing plants, such as TSMC and Samsung, despite very low profitability and declining performance. The company is currently in the midst of a refocusing process in which it is concentrating more on attracting external customers such as AMD, Broadcom and Nvidia – customers who are still wary of manufacturing in its factories. In April, Tan revealed that the Kiryat Gat plant is responsible for several key processes in the global company, such as responsibility for manufacturing chips using 7-nanometer and 10-nanometer technology, and for implementing AI in all of the company’s factories around the world.
Intel said, “Starting earlier this year, we have been taking steps to become a leaner, faster and more efficient company. Removing organizational complexity and empowering our engineers will allow us to better serve customer needs and strengthen the company’s performance. We are making these decisions based on careful consideration of what is needed to position our business for the future, and we will treat people with care and respect as we complete this important mission.”
Published by Globes, Israel business news – en.globes.co.il – on June 17, 2025.
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