Intel Israel is to close its Jerusalem production plant by the end of the year and transfer its 170 employees to its Kiryat Gat fab in southern Israel. Only a small number of employees will be laid off. The move comes as part of Intel's recently announced global streamlining plan, which will see the chipmaker reduce its workforce worldwide by 12% including several hundred Intel Israel employees.
Intel Israel declined to comment on the matter.
Intel's development center in Jerusalem will not be effected by the closure of the production plant.
Over the past few weeks many Intel Israel employees have received dismissal notifications as part of the global layoffs including workers in Kiryat Gat.
Alongside the layoffs, Intel is also hiring employees ahead of the opening of the new upgraded plant in Kiryat Gat next year, which will have 4,000 employees.
In the wake of Intel's global streamlining plan, management has stressed that the company will keep all its commitments to the Israeli government regarding the large grant it has received.
Published by Globes [online], Israel business news - www.globes-online.com - on May 18, 2016
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