Intel Implements Major Downsizing in Israel
(MENAFN) The American semiconductor giant Intel has initiated a significant workforce reduction and operational downsizing at its principal production facility located in the southern Israeli city of Kiryat Gat.
This development reflects broader, underlying difficulties the company is grappling with, both in Israel and across its global markets.
As detailed in a comprehensive article by an Israeli business daily, the number of employees at Intel’s Kiryat Gat facility has decreased substantially—from approximately 5,000 workers in 2019 to just 4,000 by the close of 2023.
This downsizing is part of a sweeping corporate reorganization, prompted by a steep drop in Intel’s annual earnings, which fell from $78 billion in 2020 to $53 billion in 2023.
Over this period, the company also incurred a substantial net deficit amounting to $18.7 billion.
Among the changes, Intel is automating its production lines at the Fab 28 facility, a move that has resulted in the layoff of roughly 200 factory employees, along with about 10% of its R&D personnel.
Fab 28, which began operations in 1996, was previously seen as a high-performing industrial benchmark, having generated $86 billion in total exports — representing between 3% and 3.5% of Israel’s yearly export output.
The article also emphasized the intensifying competition Intel faces from Taiwan’s TSMC, which has taken the lead in manufacturing cutting-edge chips for major clients including Apple, Nvidia, and Amazon.
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