Sony is planning significant layoffs at its development center in Hod Hasharon, Israel.

Reports indicate the cuts could affect over 100 of the roughly 400 employees currently working at the facility.

The center was established in 2016 after Sony acquired Israeli chip company Altair for US$212 million.

The site focuses on developing low-power, compact chips for advanced wireless applications, including gas and water meters.

It plays a key role in Sony’s semiconductor R&D and is managed by Nohik Semel.

These layoffs are part of broader workforce reductions across Sony, which has already cut staff in various divisions, including gaming.

The company has not yet issued a statement regarding the move.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Sony’s Israeli layoffs reflect the company’s long-established pattern of cyclical restructuring

Sony’s current reduction of up to 25% of staff at its Israeli semiconductor facility aligns with the company’s approach to maintaining profitability through periodic workforce adjustments.

This follows Sony’s 2008 global restructuring when it cut 8,000 jobs (5% of its electronics division) while simultaneously halting the hiring of 8,000 contractors, alongside closing 10% of its manufacturing sites1.

Similar patterns appeared in 2014 when Sony reduced staff across multiple divisions, including its Interactive marketing team where over 70 employees were laid off as part of a broader $250 million cost-saving initiative2.

The Israeli R&D center, which develops low-power wireless chips following Sony’s $212 million acquisition of Altair in 2016, represents a strategic asset that Sony appears to be rightsizing rather than abandoning.

These recurring restructurings show Sony’s approach to maintaining competitiveness by adjusting workforce levels while preserving core technical capabilities during challenging market conditions.

2️⃣ Semiconductor companies face optimization pressures despite industry growth

Recent Sony developments