Introduction:
On July 7, 2025, Intel initiated a sweeping round of layoffs that is sending shockwaves across the tech world. Intel Layoffs jobs in both the United States and Israel, targeting thousands of workers and critical business units in a strategic shift to streamline operations and prioritize future-ready manufacturing.
For the first time, Intel’s storied Kiryat Gat plant in Israel—once considered a protected crown jewel—faces job losses and even a possible shutdown.
As Intel repositions itself to compete head-to-head with TSMC and Samsung in the global foundry race, the consequences of these moves are starting to ripple through the workforce and across borders.
techovedas.com/intel-layoffs-july-2025-10000-jobs-cut-auto-division-closed
Quick Overview
Intel began global layoffs on July 7, affecting thousands in the U.S. and Israel.
Foundry division faces 15–20% workforce cuts, signaling a deep restructuring.
Intel exits automotive chip unit, shutting it down completely.
Israel’s Kiryat Gat plant hit for the first time, with a full closure reportedly under review.
Intel shifts focus to advanced fabs in the U.S. and Europe to compete with TSMC and Samsung.
What’s Driving the Layoffs?
Intel’s decision is rooted in its need to optimize costs and focus investments on high-return areas like advanced chip manufacturing. The company is actively transforming into a foundry powerhouse, spending over $20 billion in the past year to expand fabrication capacity in the U.S. and Europe.
To fuel these investments, Intel is trimming fat elsewhere. Here’s what’s happening:
- Intel Foundry Services (IFS) will lose 15% to 20% of its workforce, according to Oregon Live—amounting to several thousand jobs.
- Intel’s Automotive Tech Division is being completely shut down, affecting staff worldwide.
- In the U.S., Oregon will again see significant cuts (around 3,000 last year), while over 100 employees in California are already confirmed to be affected.
Intel has not publicly disclosed the total number of layoffs, but the scale is clearly substantial and global.
techovedas.com/100-billion-tsmc-and-samsung-explore-chip-mega-factories-in-uae
Spotlight on Israel: Kiryat Gat Under Pressure
The most concerning development is unfolding in Israel, where Intel employs around 9,300 people. Nearly 4,000 of them work at Fab 28, the company’s fabrication facility in Kiryat Gat. This plant produces semiconductors using Intel 7 process technology, which includes older 10nm and 7nm nodes.
Until now, this fab had been spared from job cuts, largely due to the hundreds of millions of dollars in government grants Intel received from Israel. But that immunity has ended.
According to CTech and ynet, hundreds of layoffs have begun at Kiryat Gat, marking the first time this plant is affected by corporate downsizing. Even more alarming, Globes reports that Intel is now reviewing whether to shut down Fab 28 entirely.
Why Kiryat Gat Is Vulnerable
- The fab is over two decades old and is no longer competitive with modern foundries pushing 3nm and 2nm processes.
- Market demand for 10nm and 7nm chips is falling fast.
- Upgrading the facility would be expensive and less efficient than investing in brand-new fabs in the U.S. or Europe.
Intel’s Global Fab Strategy
Intel is playing the long game. CEO Pat Gelsinger’s “IDM 2.0” strategy aims to establish Intel as a global foundry competitor. That means building new fabs, like:
- Ohio and Arizona (U.S.): Multi-billion-dollar projects in progress.
- Magdeburg (Germany): European expansion with EU subsidies.
- Leixlip (Ireland): Continues to receive investments for advanced nodes.
Older fabs like Kiryat Gat, which can’t easily scale down to 3nm-class processes, are increasingly seen as non-core assets.
Layoff Snapshot
| Region | Division | Impact |
|---|---|---|
| Oregon, U.S. | Foundry | ~3,000 roles affected |
| California, U.S. | HQ | 100+ roles confirmed |
| Global | Automotive Division | Full shutdown |
| Israel (Kiryat Gat) | Fab 28 | Hundreds laid off; closure under review |
What’s at Stake for Israel?
Kiryat Gat is not just a fab. It’s a strategic employer and a symbol of Israel’s global tech stature. If Intel shutters it:
- Thousands of high-skilled workers could be displaced.
- Government funding policies may face scrutiny.
- Israel’s role in the future semiconductor supply chain may shrink.
Intel’s investment in a new $25 billion fab in Israel—announced in 2023—now looks uncertain unless the company clarifies the role of Kiryat Gat versus new projects.
/techovedas.com/intel-q1-2025-deep-losses-mass-layoffs-and-a-chip-gamble-in-a-tariff-storm/
Final Thoughts: Necessary or Risky?
Intel’s layoffs reflect the harsh economic realities of a company racing to reclaim leadership in the semiconductor industry.
While the strategy may pay off in the long run, the short-term cost is high—especially for employees, communities, and countries like Israel that invested heavily in Intel’s presence.
If Kiryat Gat closes, it will mark the end of an era and the beginning of a leaner, more aggressive Intel. The world will be watching to see what path the chip giant takes next.
ttps://www.yolegroup.com/product/report/overview-of-the-semiconductor-devices-industry-h1-2025
Conclusion
Intel’s dual-front layoffs underscore the brutal reality of today’s chip market. Intel Layoffs in the U.S. and Israel reflect a shift away from mature technologies and unprofitable segments.
As the company channels resources toward leading-edge fabs, thousands will face career upheaval.
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