Semiconductor giant Intel will begin laying off over 17,000 employees tomorrow (Monday), including in Israel, sources close to the matter have told "Globes." Intel employees worldwide including in Israel, where Intel is the biggest employer in the country’s tech sector, will be hit by what will be Intel’s biggest-ever streamlining plan.
As far as is known, Intel will tomorrow begin sending out details about voluntary retirement programs and will ask those interested to sign up. The program, known at the company as Corporate People Movement (CPM), will enable employees close to retirement age or with a low performance ranking to leave voluntarily in exchange for a one-time buyout payment and incentivized pension.
The "Oregon Live" website detailed plans for the dismissals in the US. Employees at the production and development site in Portland learned that after the registration phase for the voluntary retirement program that will take effect tomorrow (Monday), the layoff process will begin "some time later and move forward quickly," although the layoff phase will only begin after it becomes clear how many employees ultimately sign up for the voluntary retirement program.
In any event, employees that Intel decides to dismiss will learn their fate by the beginning of October. The process should be completed by November 15, by which time the company wants to cut 15% of employees. In the long term, Intel seeks to cut costs by $10 billion annually, as the company continues to shrink both in terms of revenue, and market share in computers and servers, and its value. On Friday, after publishing worse than expected financial results and announcing the 15% layoffs, for the first time in decades, Intel's market fell below $100 billion to $97 billion. The company is seeing widening losses, low growth forecasts and a negative cash flow caused by huge investments in new factories.
Intel employs 124,800 people worldwide and has some 11,000 employees altogether in Haifa, Jerusalem, Petah Tikva, and Kiryat Gat. Last month, Intel notified at least twelve suppliers and contractors of the suspension of work on its new $25 billion factory in Kiryat Gat, Fab 38, to produce advanced chips on EUV lithography. The suspension was apparently ordered because of cash flow problems and a decision to delay procurement until customers for the new facility had been recruited.
"Oregon Live" reported that Intel CEO Pat Gelsinger told employees in Portland, "I don’t feel good today. I’ve agonized over today for the last three, four weeks. Many nights waking up at 2 a.m. because I know that what we do, and how we’re affecting you and your families, it matters."
Published by Globes, Israel business news - en.globes.co.il - on August 4, 2024.
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