Intel’s Israeli operations are facing uncertainty amid expectations the tech giant will lay off more than 20,000 workers globally as part of a cost-cutting initiative, with local impact still unclear.
The company’s quarterly earnings report, due Thursday, is expected to shed light on the scope of the cuts and their effect on Intel’s more than 10,000 employees in Israel. The country is home to several of Intel’s key development and production centers.
During a previous round of layoffs in 2024 that eliminated 15,000 jobs worldwide, approximately 1,000 workers in Israel were let go. If this year’s reduction is similarly broad, a comparable number of Israeli employees could be affected.
Despite the concerns, Intel has a longstanding practice of offering generous voluntary retirement programs, which have historically enabled the company to reach downsizing targets with minimal disruption. Industry analysts also expect that many of the experienced employees who are laid off will find positions at other semiconductor firms operating in Israel, such as Apple, Nvidia and Tower Semiconductor.
Meanwhile, speculation is growing in the tech industry that Intel may consider selling Mobileye, the Israeli autonomous vehicle technology firm it controls. Mobileye is currently trading below the valuation at which Intel acquired it.
Intel regards Israel as a strategic hub for both chip design and manufacturing. Its chips developed in Haifa have powered computers and devices around the world for decades. The company’s investment in its Kiryat Gat manufacturing facility has proved profitable and resilient through economic fluctuations.
In addition to the Kiryat Gat plant, Intel operates major research and development centers in Haifa, Petah Tikva and Jerusalem, and maintains several other offices across the country. The company is a significant contributor to the Israeli economy, responsible for 5.5% of the nation’s high-tech exports and about 1.75% of its gross domestic product.
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Intel’s new CEO, Lip-Bu Tan, is overseeing the company’s restructuring. Prior to his appointment, Tan was a well-known investor in Israel’s semiconductor industry through both private ventures and venture capital funds. He is closely associated with Israeli entrepreneur and billionaire Avigdor Willenz, now based in Switzerland, with whom he shares investments in several tech companies. Tan also serves on the boards of at least three Israeli semiconductor firms, and his funds are invested in a broad range of Israeli tech ventures.