Intel has initiated a major round of layoffs at its Kiryat Gat chip manufacturing facility, with up to 200 employees summoned for pre-dismissal hearings, Calcalist has learned. The cuts come as part of a broader restructuring and automation push across Intel’s global operations.
The Kiryat Gat site, home to roughly 4,000 employees, is one of Intel Israel’s key manufacturing hubs. Nationwide, the company employs around 9,000 people. While the exact scale of the layoffs remains fluid, several hundred positions are expected to be impacted across the country.
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According to internal sources, the layoffs are being rolled out in two primary phases:
- The first targets middle-management roles in a streamlining effort designed to flatten organizational hierarchy. Intel is aiming to reduce management layers to foster quicker decision-making and more direct communication between teams. Group leaders overseeing production shifts—particularly first-line managers—are among those being let go. These roles sit just above the factory floor, but below senior management or engineering levels.
- The second wave affects technicians working in the Remote Operations Center (ROC), which oversees real-time manufacturing processes from a centralized digital control room. These teams remotely manage production workflows, flag faults, monitor systems, and authorize critical process steps—all without being physically present on the fab floor.
But those roles are rapidly being phased out. Intel is investing heavily in automation platforms capable of handling many of the ROC’s current responsibilities. “The writing’s been on the wall,” said one technician familiar with the process. “AI-driven analytics and automated controls are replacing what we used to do manually. It’s just a matter of time.”
Intel has told employees the layoffs are part of a global strategy to modernize its fab operations. Similar transitions are reportedly underway at facilities in the U.S. and Ireland. The full rollout of Intel’s automation systems is expected to continue into late 2025.
This week alone, Intel filed layoff notices for 54 employees in Folsom, California, 217 in Santa Clara, and 194 at its operations in Ireland. The job cuts are not limited to manufacturing. Sources say Intel Israel’s development centers will also be impacted, though specifics remain undisclosed. While the shift reflects Intel’s long-term vision for fab modernization, the short-term impact will be felt across its Israeli workforce.