Intel issues ultimatum to employees to decide whether to take severance or fight layoffs
Following months of delay, Intel workers in Israel have days to decide whether to take a layoff package or appeal their terminations.
After waiting months to learn their employment fate, hundreds of Intel Israel employees are now keeping the company waiting as they decide on their response. In recent days, Intel Israel initiated a wave of layoffs, holding meetings with employees selected for redundancy and presenting them with two options: accept a voluntary retirement package or prepare for a formal hearing to argue their case for staying. According to Israeli law, every employee is entitled to a hearing after being let go.
Intel's workforce questions its future amid layoffs and shrinking benefits
From Intel to Meta: How high-tech giants are rethinking employee perks
The formal hearing process, if chosen, will considerably delay the final outcome, adding further complexity to Intel's downsizing efforts. By offering retirement packages, Intel aims to streamline the layoffs and encourage employees to voluntarily depart, following a similar offer extended to departing employees last month.
This decision, however, comes at a time when employee morale is already low, compounded by recent cuts to workplace benefits and essential perks that had been long considered staples of Intel's high-tech culture. The elimination of free coffee, tea, and fruit has stirred widespread frustration, adding to the sense of instability. Employees accustomed to a supportive work environment now find themselves confronting not only the loss of long-time colleagues but also an erosion of basic comforts in the workplace.
Related articles:
At Intel’s recent town hall meeting, held to address these concerns, an HR representative described the challenging period as one likely to extend for months, if not years, pressing employees to reassess whether Intel remains the right fit for them. This message has fueled doubts about Intel’s commitment to its workforce, with some employees now circulating resumes and exploring other options.
Check out all Intel related articles
Adding to the uncertainty is Intel Israel’s decision to shut down Granulate, a Tel Aviv-based optimization software company acquired for $650 million in 2022, resulting in over 100 job losses. The restructuring has also affected high-level perks, such as company cars, and employees at Intel Israel are now facing decisions that could lead to further departures beyond the anticipated 15% workforce reduction.
Intel Israel’s employees must now decide their path forward in the coming days, balancing the risks of staying against the shrinking perks and stability Intel once represented.
