Intel pushes layoffs of hundreds of employees in Israel to end of October
Intel pushes layoffs of hundreds of employees in Israel to end of October
While many Intel employees across the world will find out this week if they are being let go, the cutbacks in Israel won’t take place before the last week of October following the conclusion of the Jewish holidays.
While thousands of Intel employees across the world are set to find out over the next couple of weeks if they are being laid off, the cutback of hundreds of employees at Intel Israel are not set to take place before the last week of October. After employees who opted for early retirement officially left the company at the end of September, Intel aims to complete the layoffs of approximately 15,000 employees by the end of the year.
CEO Pat Gelsinger stated last month that most layoff notices will be issued around mid-October, but the hundreds of employees that are being let go at Intel Israel will not find out until at least the last week of October due to the timing of this year's Jewish holidays. The final holiday of the month of Tishri, Simchat Torah, takes place on Thursday, October 24, meaning that the majority of Intel Israel employees won't return to full work until Sunday, October 27.
Managers across Intel's divisions have already submitted to their superiors the names of employees they recommend for layoffs.
The first phase of cutbacks occurred in August when the company announced a $10 billion cost-cutting plan, which included laying off 15,000 employees—15% of its workforce—and implementing targeted measures like canceling leasing programs and reducing employee benefits. The second phase followed last month, with the announcement that the foundry division—Intel's business of manufacturing chips for other companies—will become an independent subsidiary with its own board of directors.
Many of those opting for voluntary retirement were naturally among the company's most experienced employees, given the substantial severance packages tailored to seniority. The program offered compensation packages based on tenure: employees with five years of service received four months' salary, those with over 10 years were entitled to 10 months' salary, and employees with more than 30 years of service received 19 months' salary upon retirement.
