Intel Corporation (Nasdaq: INTC) has begun firing about 80 employees in Kiryat Gat. These cuts come in the wake of last week's festivities when the giant chipmaker announced a huge investment to expand its Kiryat Gat fab, which will also yield a NIS 1 billion grant from the Israeli government.
The layoffs are at the Kiryat Gat plant of US chipmaker Micron, which Intel took over at the end of 2013. As part of the arrangement, Intel took 800 employees into its ranks as well as 130 temporary employees and 60 students. Most of the former employees at the Micron fab, which was saved from closure, have been integrated into Intel's workforce.
Sources close to the matter have informed "Globes" that 50 out of the 130 temporary employees have left Intel in recent months, most of them of their own volition, and aware that their contracts ended in May. The other 80 that are on contract until the end of the month have been summoned to hearings ahead of their dismissal. These employees reportedly knew their contracts would not be extended when Intel took over the Micron fab.
Intel said, "On September 29 2013 Intel officially announced that it had signed a deal to resume owning the building it had leased to Micron Israel, and would offer immediate employment to 800 staff in the south. At the time Micron Israel had 1,000 direct employees and according to the agreement between the two companies Intel publicly announced that it was offering full time jobs to 800 Micron Israel employees, 130 temporary employees and 60 students. In the past few months 800 Micron employees have moved to Intel and hiring procedures have been completed. The decision to close the Israeli factory was taken by Micron which informed its employees who was on temporary contracts and who was on permanent contracts.
Published by Globes [online], Israel business news - www.globes-online.com - on May 12, 2014
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