Intel ends car leasing program in latest cost-cut
The chip giant’s Israel management is aiming to save around $3.3 million by axing leasing as part of a broader layoff prevention strategy.
The cuts at Intel Israel continue. The company has informed thousands of its employees that it intends to cancel their vehicle leasing program. This move is part of broader cost-cutting measures aimed at reducing the number of layoffs in Israel, which are estimated to range from several hundred to as many as 1,500. Canceling the leasing program is expected to save the company approximately NIS 12 million ($3.3 million).
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Employees have been asked to return their leased vehicles by the end of the year, and the company will not renew the program next year. Intel currently employs around 11,700 workers in Israel, with 7,800 in development and 3,900 in production roles.
The termination of the leasing program follows the conclusion of a significant voluntary retirement program, the closure of Intel Ignite—an accelerator originating in Israel with several branches worldwide—and other cost-cutting initiatives. In the near future, the company will also begin significant layoffs in Israel and globally as part of its plan to reduce its workforce by 15% in order to save $10 billion.
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Last week marked the end of the first phase of Intel’s downsizing plan in Israel, closing the window for voluntary retirement applications. It is estimated that a large number of employees applied out of concern that they would eventually be laid off.
As previously mentioned, Intel recently announced its intention to reduce its workforce by approximately 15% (15,000 employees) as part of a major reorganization aimed at cutting $10 billion in costs. As part of this, the company offered most employees the opportunity to retire with preferential terms. Now that this phase is complete, Intel will assess the number of retirees in each division and adjust the planned cuts accordingly.
