Intel, the leading chip giant and the largest employer in Israel's high-tech Cuts Holiday Gifts

Intel, the leading chip giant and the largest employer in Israel's high-tech industry, has announced that it will not be providing holiday gifts to its employees this year in celebration of Rosh Hashanah. This move is part of Intel's ongoing efficiency plan, aimed at reducing expenses by $10 billion by 2025.

Unlike previous years when Intel had a tradition of gifting its employees with items worth several hundred shekels, the company is now tightening its belt. This decision aligns with a broader trend among global companies that have curtailed holiday gift-giving to employees as part of their corporate policies.

The Israeli high-tech job market has witnessed a decline in employee recruitment, multiple rounds of layoffs, wage freezes, and an oversupply of job seekers. Despite these challenges, the competition for top talent remains fierce, prompting companies to focus on employer branding and enhancing their image among employees. Intel's recent cost-cutting measures extend to other aspects of employee benefits.

While employers are not legally obligated to provide holiday gifts to their workforce in Israel, ceasing the practice after years of tradition may be viewed as a deterioration in working conditions, as is common in the high-tech sector. In some cases, these practices are regulated by collective agreements.

Intel's recent financial struggles led to the initial decision to reduce salaries for company managers, including those in Israel. However, after reporting a return to profitability in the second quarter of the year, Intel reversed its plans to cut manager salaries. This turnaround was attributed to cost-saving measures, including layoffs, which resulted in a $3 billion savings for the company this year.

Intel Israel, with over 11,000 employees involved in production and development, also indirectly employs several thousand workers through Israeli companies it has acquired over the years. In the past year, Intel Israel carried out three rounds of layoffs as part of its efficiency efforts.

As Intel continues to adapt to changing market conditions and financial challenges, the decision to forgo holiday gifts reflects a broader trend in the tech industry, where companies are increasingly focused on managing expenses while maintaining their competitive edge in talent acquisition and retention.