Intel Announces Major Workforce Reduction, Israeli Operations at Risk

Intel Corp. is set to cut up to 20% of its global factory workforce in one of the most significant restructurings in the company's 55-year history. The layoffs will span multiple countries, with particular focus on its Kiryat Gat facility in southern Israel—a critical node in Intel's semiconductor manufacturing network.

The Israeli operations employ 9,350 workers, including 4,000 at the Kiryat Gat plant that produces advanced chips. Unlike previous workforce reductions that shielded Core manufacturing sites, this restructuring appears more comprehensive, potentially affecting hundreds of technical staff and mid-level managers when implemented starting July.

CEO Lip-Bu Tan is driving the cuts as part of a broader operational overhaul, emphasizing execution efficiency amid declining market share and manufacturing delays. The MOVE comes as geopolitical tensions in the region add uncertainty to Intel's long-term Israeli investments, including a planned $25 billion expansion of the Kiryat Gat facility.