Intel shareholders voted on May 6, 2025 against a proposal to reassess the company’s operations in Israel.

The proposal, presented at Intel’s annual meeting, called for an Ethical Impact Assessment due to allegations of human rights violations in Gaza.

Intel’s Board of Directors recommended rejecting the motion, arguing that changing its operations in Israel could negatively impact the company and its shareholders.

The company’s workforce in Israel has been decreasing. Employee numbers dropped to 9,350 in 2025, down from 10,800 in 2023 and 12,000 in 2021.

This figure represents the lowest since 2013 and may decline further as part of Intel’s global restructuring and cost-cutting efforts.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Intel’s Israeli operations have historically been crucial innovation centers

Intel’s 50-year presence in Israel extends far beyond typical international operations, with its Israeli teams having developed several of the company’s most transformative products.

The Israeli R&D centers created the Pentium M and Core-2 processors that revolutionized mobile computing, with the Sandy Bridge processor family (developed in Israel) accounting for 40% of Intel’s global sales in 2011 1.

This historical relationship explains why Intel’s board emphasized that “any divestment from or operational downsizing within Israel… would likely cause significant harm to the company” in their opposition to the shareholder proposal.

The Israeli team was pivotal in addressing the “power wall” challenge when chips were becoming too hot for mobile devices, proposing low-power designs that initially faced skepticism but ultimately became Intel’s competitive advantage 2.

Intel’s Israeli operations have been responsible for developing processors used in everything from netbooks to Windows tablets, maintaining critical intellectual property development despite the current workforce reductions.

2️⃣ Intel’s Israel workforce reduction reflects broader industry challenges

Intel’s Israeli workforce decline from 12,000 in 2021 to 9,350 today mirrors challenges facing the broader semiconductor industry, not just geopolitical concerns.

The company’s global restructuring comes amid increasing competitive pressure, with the technology sector experiencing significant layoffs throughout 2024 despite overall projected industry growth of 9.3% 3.