[News] Intel Reportedly Began Job Cuts on Monday in U.S. and Israel, Eyes Possible Kiryat Gat Plant Closure

Intel’s latest round of layoffs is reportedly underway, affecting employees in both the U.S. and Israel, according to Oregon Live and CTech. Oregon Live reports that the company began widespread job cuts on July 7, likely to impact thousands of workers. However, Intel has not disclosed how many roles will be cut or the duration of the layoff process, the outlet adds.

Oregon Live notes that Intel informed employees in its Foundry unit last month of plans to cut 15% to 20% of positions—amounting to several thousand jobs. In addition to cuts at Intel Foundry, the company reportedly intends to shut down its automotive technology division and lay off the majority of its staff.

Intel eliminated roughly 3,000 jobs in Oregon last year. According to Oregon Live, the current round of layoffs appears to be comparable in scale. Alongside the cuts in Oregon, Oregon Live notes that Intel recently informed California officials of plans to lay off just over 100 employees at its Silicon Valley headquarters.

Intel Israel Hit by Job Cuts, Kiryat Gat Plant Affected for First Time

Meanwhile in Israel, Intel began issuing layoff notices on July 7 as part of its latest round of workforce reductions, according to CTech. The report notes that, for the first time, the cuts will extend to the company’s Kiryat Gat facility—which had previously been spared but is now a key target in this wave. CTech estimates that several hundred employees will be affected in this phase.

CTech notes that Intel Israel employs approximately 9,300 people, with around 4,000 based at its Kiryat Gat facility.

As indicated by ynet, Intel’s Kiryat Gat facility has received substantial government grants over the years and had previously been spared from layoffs due to the company’s commitments to the state. However, the report points out that the plant is now considered outdated, and its potential closure is reportedly under review.

Production at Intel’s Kiryat Gat plant is declining due to its reliance on older 7nm and 10nm technologies, though the facility is reportedly equipped to support more advanced processes, as noted by Globes.

According to Intel Israel’s website, the company has been manufacturing chips in Kiryat Gat for over two decades, with Fab 28 producing processors, 5G components, and AI products using Intel 7 technology.

Read more

• [News] Intel Reportedly Braces for Major Layoffs on July 15, Closes Automotive Unit
• [News] Intel Reportedly to Launch Mid-July Layoffs, Mass Cuts to Hit Global Manufacturing

(Photo credit: Intel)