Intel Corp. (Nasdaq: INTC) nnounced on Friday that it expects to reduce its workforce by 5% in 2014. With 107,000 employees worldwide, this means that the chipmaker will be shedding more than 5,000 jobs. Intel Israel has 9,000 employees so simple arithmetic would suggest the loss of over 400 jobs.
However, Intel hastily added that the company is not talking about "layoffs" but "cost reductions," semantics that underline just how sensitive this subject is. On an average year 4% of Intel's workforce leaves for various reasons, so calculating the numbers means that Intel Israel - production and development will reduce its workforce by just dozens of employees in terms of layoffs. In 2013, Intel Israel hired 1,000 employees in Israel including 800 who were taken in from the fab that Micron closed down.
Intel is currently in talks with the Israeli government about setting up a next generation fab in Israel in exchange for a $900 million grant. Next week Intel Israel will hold its annual press conference when some of the questions surrounding this issue may be answered.
Published by Globes [online], Israel business news - www.globes-online.com - on January 19, 2014
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