Intel reportedly scaling back R&D teams in Israel — several hundred talented staff will go

Intel plans to reduce its workforce by several hundred employees at its Israeli research and development centers, following similar job cuts at its facilities elsewhere, reports DigiTimes. This move is part of the company’s general cost-cutting measures amid financial challenges, and it opens opportunities for competitors to attract Intel’s talent. There is a catch, though, as dozens of Intel employees already left the company for Nvidia earlier this year, according to Globes.

Intel’s Israeli operations employ around 11,700 people, including 7,800 in R&D roles and 3,900 in manufacturing, with the latest layoffs expected to focus on R&D while leaving manufacturing staff largely intact as Intel readies for the completion of Fab 38 in Kiryat Gat, the report says. The exact number of people that will either be proposed to leave voluntarily, or retire, or just laid off is not known, but Globes reports that Intel is set to cut its Israeli workforce by several hundred positions.

Intel has three R&D sites in Israel. Each of these Israeli centers has a specialized focus: Haifa works on CPUs, AI hardware, and software; Petah Tikva develops communications and AI solutions; and Jerusalem is involved in communications, software, and cybersecurity. The report does not specify which R&D sites will see more cuts, other than saying that layoffs are expected in these R&D centers. But let us try to detail at least one thing.

Intel’s Israeli R&D team is responsible for multiple breakthrough microarchitectures, such as Banias, Yonah/Merom, and Nehalem, just to name a few. Each of these was strategically important for Intel at some point. In fact, the Banias processor was the heart of Intel’s Centrino platform, the company’s first platform developed specifically for laptops, which pretty much revolutionized the market. Yonah/Merom put Intel back on the map of high-performance PCs and replaced the power-hungry Netburst microarchitecture that powered Pentium 4 processors.

But while Intel itself is slashing its R&D talent in Israel, it should be noted that people are leaving the company, too. Nvidia has been hiring former Intel employees: in 2024 alone, at least 30 Intel employees moved to Nvidia’s offices in Yokneam and Tel Aviv, with total hires from Intel estimated to range from 60 to 90, according to the Globes report which analyzed LinkedIn profiles. Nvidia is expected to hire more Intel employees as the layoffs continue, possibly bringing the number to about 100. As of June 30, Nvidia reported a workforce of 4,000 employees in Israel, reflecting the company’s growing presence in the region.

Many Intel employees who moved to Nvidia are benefiting from more attractive compensation packages. For instance, a junior hardware engineer at Nvidia can expect a starting annual salary of NIS 566,000 (around $151,500), about 33% higher than the equivalent role at Intel. Nvidia also offers significantly more valuable share options compared to Intel, with packages starting at NIS 56,200 annually ($15,045).

In addition to Nvidia, other major tech companies are also drawing former Intel employees. Apple, Amazon, and Intel’s subsidiary Mobileye have recently hired from Intel’s workforce in Israel. Some groups have joined Microsoft, Google, and Huawei, which operates a development center in Haifa.