Upon completing the first phase of its reduction plan in Israel, Intel has closed its voluntary retirement program, now focusing on non-revenue activities and adjusting layoffs accordingly.
Intel has completed the initial phase of its downsizing plan in Israel, with the application period for its voluntary retirement program now closed, according to a report by Calcalist. This program offered favourable conditions for eligible employees to retire early, and many employees have chosen it, fearing potential layoff.
The company will now evaluate the number of retirement applications from each division and adjust its overall layoff strategy accordingly. The planned reductions will include significant layoffs and activity cutbacks to minimise job losses, as per reports.
Earlier this month, Intel announced a plan to reduce its workforce by about 15% to achieve $10 billion in cost savings by 2025 through a new operating model. It mentioned an ‘enhanced retirement package’ and a voluntary departure program for eligible employees, with most layoffs anticipated to be completed by the end of this year.
Intel’s voluntary retirement program included severance packages based on employees’ seniority. Upon retirement, those with five years of service received four months’ salary, those with over ten years receiving ten months’ salary, and those with more than thirty years receiving nineteen months’ salary.
Intel CEO Pat Gelsinger further commented that a significant part of the reductions will involve closing or scaling down activities that do not contribute to the company’s revenue. The company currently employs around 11,700 workers in Israel, with 7,800 in development roles and 3,900 in production, out of a total global workforce of 110,000.
Estimates suggest that Israel will likely experience several hundred layoffs. The reductions are being made by division rather than country or region, which implies that divisions not directly related to technology, such as human resources and marketing, will likely face more substantial cuts. At the same time, development and production areas may see fewer reductions.
