Intel's layoff plan enters new phase after voluntary retirement program closes
Intel's layoff plan enters new phase after voluntary retirement program closes
With initial retirements complete, Intel focuses on additional layoffs and operational scaling.
Intel has completed the first phase of its downsizing plan in Israel, as the window for submitting applications for the voluntary retirement program—offering preferential conditions for eligible employees—has now closed, Calcalist has learned. It is estimated that a significant number of employees applied for voluntary retirement due to concerns that they might be laid off regardless. The company will now assess the number of employees opting for retirement in each division and adjust the scope of layoffs accordingly. The planned cutbacks will involve not only significant layoffs but also reductions in various activities to minimize the number of layoffs.
Intel CEO Pat Gelsinger addressed the issue, stating that a substantial portion of the reductions would involve closing or scaling back activities that do not significantly contribute to the company's revenue. Recently, Intel announced its intention to reduce its workforce by approximately 15% as part of a major reorganization aimed at achieving $10 billion in cost savings. Intel currently employs about 11,700 workers in Israel, including 7,800 in development roles and 3,900 in production roles, out of a global workforce of 110,000.
Estimates suggest that Israel will likely see at least several hundred layoffs. The layoffs at Intel are being made by division rather than by country or region, meaning some divisions—particularly those not directly related to technology, such as human resources and marketing—are expected to be more heavily impacted, while development and production divisions may face less severe cuts.
Intel’s voluntary retirement program included severance packages tailored to employees’ seniority levels. The program offered compensation packages that varied based on tenure: employees with five years of service will receive four months' salary, those with over 10 years will be entitled to 10 months' salary, and employees with more than 30 years of service will receive 19 months' salary upon retirement.
