Intel may lay off as much as 800 Kiryat Gat staff

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Intel is predicted to put off as much as 20% of its manufacturing staff in response to reviews, together with in “Oregon Stay,” which intently covers the chipmaker. Intel VP manufacturing Naga Chandrasekaran wrote to staff, ” “These are troublesome actions, however important to fulfill our affordability challenges and the present monetary place of the corporate.” Chandrasekaran added that the corporate will reduce between 15% and 20% of its manufacturing workforce beginning July.

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As of the top of 2024, Intel had 4,000 staff at its manufacturing plant in Kiryat Gat, though this quantity may have decreased. In any occasion as many as 800 staff in Israel might be set to lose their jobs. Total Intel has 9,350 staff in Israel in growth facilities and manufacturing fabs.

“Oregon Stay” estimates that the worldwide transfer will reduce about 10,000 jobs from the corporate’s present 100,000-109,000 staff, after the Intel shed 17,000 jobs final yr. Intel CEO Lip-Bu Tan, who was appointed in March, mentioned a number of occasions on taking workplace that he was engaged on a transfer to flatten the corporate’s construction to scale back the variety of center managers and simplify bureaucratic processes.

Intel nonetheless employs extra staff than rival manufacturing crops, reminiscent of TSMC and Samsung, regardless of very low profitability and declining efficiency. The corporate is presently within the midst of a refocusing course of through which it’s concentrating extra on attracting exterior clients reminiscent of AMD, Broadcom and Nvidia – clients who’re nonetheless cautious of producing in its factories. In April, Tan revealed that the Kiryat Gat plant is liable for a number of key processes within the world firm, reminiscent of accountability for manufacturing chips utilizing 7-nanometer and 10-nanometer expertise, and for implementing AI in all the firm’s factories around the globe.

Intel mentioned, “Beginning earlier this yr, now we have been taking steps to turn out to be a leaner, sooner and extra environment friendly firm. Eradicating organizational complexity and empowering our engineers will enable us to raised serve buyer wants and strengthen the corporate’s efficiency. We’re making these selections based mostly on cautious consideration of what’s wanted to place our enterprise for the long run, and we’ll deal with individuals with care and respect as we full this vital mission.”

Printed by Globes, Israel enterprise information – en.globes.co.il – on June 17, 2025.