Intel on Wednesday, 10 Iyar, announced it will be ceasing production in its Jerusalem facility by the end of 2016 and this will lead to the transfer of 170 employees to Kiryat Gat, where the high-tech giant has another major facility.

A small number of workers will lose their jobs as part of Intel’s global cut of 12,000 employees as was reported by YWN-ISRAEL.

After the announcement went viral, leading to a measure of panic in the Jerusalem high-tech community, the Jerusalem Municipality spokesman released the following statement.

“Intel will remain in Jerusalem. Intel will continue operating its development facility that employees 1,200 people and is even contemplating expanding.

“Due to the company’s global reduction, the company decided to reduce some of the production taking place in Jerusalem and move it to Kiryat Gat. 170 employees will continue working in Kiryat Gat. The city stresses that Intel’s continued operation is essential and significant to Jerusalem and the mayor plans to speak with management to weigh expanding its Jerusalem operation”.

(YWN – Israel Desk, Jerusalem)