The ricochets from the shock at Intel worldwide are also reaching Jerusalem: 'Calcalist' reports that the company intends to close its packaging plant in Jerusalem. The closure of the plant will be carried out gradually and the workers will move to the company's plant in Kiryat Gat.
According to estimates, about 170 company employees will move to Kiryat Gat, and only a few will not move and will be laid off.
Apart from this, the company's R&D activities in Jerusalem, which include approximately 1,230 additional employees, are not affected by this process.
Intel's Jerusalem plant was established in 1984 and was the company's first chip manufacturing plant outside the United States and the first to produce silicon wafers outside the United States. The plant is responsible for pre-packaging activities, that is, the pre-packaging stages of the chips produced at the Kiryat Gat plant. In 2008-2009, the plant was closed and rebuilt.
As part of the shake-up the company is going through, Intel has so far notified about 300 employees of their layoffs. Some are voluntary retirements, others are being laid off. The employees continue to be employed by the company until the end of July under full conditions, and many of them have received generous compensation of eight salaries in addition to the compensation due by law.
Calcalist revealed that Intel does not give the full amount of excess compensation to employees who request to attend the hearing and reduces it by at least half.
Intel responded: "Intel continues to accelerate its evolution from a computer company to a company that powers the cloud and billions of smart, connected computing devices. To that end, Intel is working to increase its investments in areas with high growth potential and to consolidate operating sites to become a more efficient, flexible and profitable company.".
""The company has therefore decided to concentrate its pre-packaging activities at a limited number of sites, and as a result plans to cease this activity at the Jerusalem site by the end of this year. We are committed to helping all employees who will be affected by the move during this transition period, and we will offer the vast majority of them other positions at Intel, mainly at the Kiryat Gat plant. Most Intel Jerusalem employees will continue to work as usual at the development center and will not be affected by this transition.".
It should be noted that Intel Israel is the largest private employer in the country, with five centers of operation across the country. The company has 3,400 production employees at its plants in Kiryat Gat and Jerusalem, and another 6,600 development employees in Petah Tikva, Yakum and Haifa.
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