In a seismic move poised to redefine the global semiconductor landscape, Intel Corporation is preparing to axe an unprecedented 22,000 jobs—and Israel, one of its crown jewel tech hubs, is squarely in the crosshairs.
Despite no formal announcements yet concerning Israel's specific exposure, insiders suggest even the most favorable scenarios include several hundred layoffs, while worse-case forecasts stretch into the thousands, casting a long shadow over the country’s flagship high-tech sector.
A Storm Brewing in Silicon
The layoffs—the largest in Intel’s 56-year history—were first revealed by Bloomberg and are part of a sweeping reorganization campaign launched by new CEO Lip-Bu Tan, who took the reins in March. This marks Intel’s second major round of cuts in under a year, following a 15% workforce reduction last August that rattled global operations and left Israel largely spared. That luck may now be running out.
Intel currently employs around 9,300 workers in Israel, with a significant presence in both cutting-edge R&D and strategic manufacturing operations centered in Kiryat Gat. The Kiryat Gat fab alone employs 4,000 workers and is critical to Intel’s global chip production roadmap—a fact that may shield it from the deepest cuts, according to local industry experts.
The scale of this is approaching biblical proportions. 36k jobs gone since August. Is that about a third of total headcount going in less than a year? https://t.co/8yMgc5O9n7
— Geoff McGimpsey (@geoffmcg) April 23, 2025
Uncertainty Reigns
With Intel expected to unveil details of the cuts during its quarterly earnings report this Thursday, nerves are fraying across the company's sprawling Israeli campuses. Employees remain in the dark, as only senior executives have been briefed so far, fueling widespread speculation and anxiety.
Sources suggest a voluntary retirement package may be offered—a “golden parachute” sweetened with generous severance terms—but many eligible employees already accepted such deals during 2024’s purge, casting doubt on how many will opt in this time.
R&D Might vs. Corporate Fat
Tan has signaled he intends to protect Intel’s revenue-generating core, especially technical roles in chip design and engineering, many of which are based in Israel. These include pivotal teams working on next-gen CPU development for PCs and servers—areas where Intel still maintains market relevance.
But that doesn't guarantee immunity. Divisions not directly contributing to immediate revenue, particularly legacy projects and support roles, are now marked for potential elimination. The R&D sector, while vital, is not untouchable—especially as Intel continues trimming what insiders call “operational fat.”
Intel's 2025 layoffs of over 21,000 employees could save $2.1–$3.15 billion annually, based on estimated employee costs of $100,000–$150,000. These savings follow a $10 billion cost-cutting plan from 2024, which included 15,000 layoffs. Severance costs may reduce short-term…
— Grok (@grok) April 23, 2025
Strategic Missteps and A CEO Shakeup
Intel’s unraveling has been a long time coming. The chipmaker missed both the mobile and AI revolutions, ceding ground to more agile rivals like AMD and Nvidia. Former CEO Pat Gelsinger’s ambitious vision of reviving Intel through its foundry business—manufacturing chips for others—failed to gain traction.
Gelsinger’s abrupt resignation in December signaled deeper trouble. Reports soon surfaced of Intel mulling the sale or spin-off of entire business units, including parts of its once-prized manufacturing and chip development wings.
Enter Lip-Bu Tan. In just a few months, he’s already offloaded 51% of Altera, Intel’s programmable chip unit, to Silver Lake for a stunning $8.75 billion loss—underscoring the company’s desperate need for liquidity and focus.
Inside Intel’s biggest-ever layoff: a blueprint for a wounded giant.
— CTech (@Calcalistech) April 23, 2025
CEO Lip-Bu Tan is gambling on speed, clarity—and the engineers he hopes to rehire.https://t.co/10O6OYwqRn
Israel’s Role on the Line
With Intel at a crossroads, its Israeli operations hang in the balance. While the Kiryat Gat fab and CPU design centers are considered strategic, no one is entirely safe as Tan reshapes Intel into a leaner, more profit-driven machine.
If the Israeli layoffs mirror even half the global average, that could translate into close to 1,000 pink slips—a staggering figure in a country where Intel is often viewed not only as an economic engine, but a symbol of technological prowess and Western partnership.
What's Next?
Intel’s earnings call Thursday will likely set the tone for its next chapter. For thousands of employees—especially in Israel, where the stakes are both economic and symbolic—the clock is ticking.
Whether Israel’s role will be fortified or diminished in Intel’s reimagined future remains uncertain. But one thing is clear: the age of corporate comfort at Intel is over, and the era of ruthless reinvention has begun.
