Intel Shuts Israeli AI Research Unit, Lays Off 13 Senior Staff

Intel has closed its artificial intelligence optimization and agents group at its research labs in Israel, laying off the 13 senior researchers and developers who comprised the unit. The move effectively shutters the department in the country. The internal reason provided for the closure cited organizational and geographical considerations, though the company has declined to comment officially, according to a Globes report.

This significant decision comes amid a broader financial efficiency program led by CEO Pat Gelsinger, which includes deep cuts in management layers and a reduction in the number of vice presidents. The closure of this Israeli unit follows a roughly 25% reduction in Intel's overall workforce in Israel in recent years, alongside a freeze on expanding local factories and a redirection of resources to India, the United States, and Ireland.

The team, led by Moshe Wasserblat, had been active for a decade, contributing to over 50 academic papers. They were credited with breakthroughs in reducing computing costs and accelerating inference times, developing advanced AI infrastructure that garnered significant international recognition. The closure has reportedly surprised senior figures in companies like Meta, Microsoft, and Hugging Face.

Despite this targeted layoff of the research team, sources close to Intel indicate the company is still recruiting for over 100 other open positions in Israel. However, the discontinuation of such a central applied research arm raises serious questions about Intel's future technological roadmap.