A sure sign of bad things to come is an empty corporate kitchen, as the Intel staff at the firm’s R&D facilities in Israel are finding out.
The tech manufacturer is set to let several hundred employees go at three separate sites in the country, a cost-cutting measure that is a relatively small part of a broader global plan to cut 15,000 employees – around half of which are yet to be unannounced.
Empty Cupboards
Employees at some of Intel’s facilities in Israel got a warning that all was not well when they came into work to empty cupboards last week.
Calcalist reported that employees heading to get refreshments were met with signs stating: “Fruit and beverage service update. Free coffee, tea, and fruit service will end on 27.10.2024.”
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The move was met with mutterings from disgruntled employees incensed that Intel was treating its retirees better than current employees, a sentiment that has only grown since the computing giant got rid of company cars back in August.
But it also reinforced fears – which turned out to be well founded – that job losses were imminent at those centers.
Which Teams Will be Affected?
Tom’s Hardware reports that the job losses will come from three sites, each with a different focus. The R&D staff at Haifa work on CPUs, AI hardware and software while the employees in Jerusalem focus on communications, software, and cybersecurity. Finally, the team in Petah Tikva develops communications and AI solutions.
Sadly for Intel, these teams have been behind some of the company’s biggest wins, including the Banias processor for the Centrino platform.
The company has confirmed that there will be cuts at each of these centers but hasn’t given more details. It employs around 7,800 people in R&D roles in Israel.
The 3,900 manufacturing staff based in the country will reportedly remain in post, Globes says, not least because the company is building a new plant called Fab 38, which will need to be staffed.
Intel’s Loss Is Nvidia’s Win
While Intel remains in the doldrums, rivals are benefitting from the mass exodus of talent. Globes writes that at least 30 employees have joined Nvidia’s teams in Yokneam and Tel Aviv, and this includes “veteran employees who have worked at Intel for a decade or two”.
It adds that Nvidia is actively growing its team in Israel and is offering better packages. Perhaps some Intel employees may choose to jump ship before they are pushed.