Intel employees at the company's offices in Israel recently faced an unwelcoming surprise: the previously well-stocked kitchenettes, known for offering complimentary coffee, tea, and fruit, which is a standard perk in high-tech workplaces—were now empty. A lone sign on the counter read: "Fruit and beverage service update. Free coffee, tea, and fruit service will end on 27.10.2024." This change was implemented following the conclusion of the holiday period in Israel.
“This may lead to further employee departures. This comes on top of losing company vehicles and cuts to stock options. A 'small' thing like coffee really affects employees—it's just embarrassing,” one Intel Israel employee told Calcalist.
Grappling with one of its most significant crises, Intel announced a large-scale cost-cutting plan in August involving laying off 15,000 employees, which accounts for over 15 per cent of its workforce. This initiative will include substantial job cuts within Intel Israel.
Layoffs are set to begin in earnest this week, with managers scheduling meetings to issue termination letters to employees selected for redundancy. Affected employees will have the opportunity to consider voluntary retirement packages or opt for an official hearing to present their case. Those departing Intel will receive access to counselling and career services, which include job search assistance, interview preparation, resume workshops, and psychological support. Overall, hundreds of employees are expected to be affected by these cuts.
Meanwhile, the tech firm plans to lay off 1,300 employees in Oregon as part of its cost-cutting strategy. The layoffs will affect four offices and are set to begin on November 15, continuing for two weeks. According to a report from the Times of India, affected employees will not have the opportunity to transfer to other roles within the company.
This step is part of a broader trend of layoffs affecting the tech industry in 2024, impacting major companies like Microsoft, Google, Apple, and Meta. Key factors driving these reductions include economic uncertainty, rising interest rates, the rapid advancement of AI technology, and over-hiring during the pandemic.