Sony is laying off over 100 employees at its chip R&D center in Israel, cutting 25 percent of the site’s workforce amid a global restructuring effort.
TLDR:
- Sony is cutting over 100 jobs at its Israeli chip R&D center in Hod Hasharon, trimming 25 percent of the workforce.
- The layoffs are part of a larger global restructuring strategy across several divisions.
- The center, established after Sony’s $212 million acquisition of Altair in 2016, remains strategically important.
- The semiconductor industry is growing overall but experiencing uneven performance and talent pressure across sectors.
What’s happening over at Sony?
It’s not every day you hear about a tech giant scaling back during a booming chip cycle, right? But that’s exactly what’s happening. Sony is cutting 25 percent of its workforce at a key semiconductor R&D facility in Israel, even as demand for chips worldwide continues to grow.
This isn’t the first time Sony has done this kind of belt-tightening, but it’s definitely raising eyebrows in the tech world.
Sony Trims Its Israeli Chip Center Amid Broader Cuts
Sony has reportedly laid off more than 100 employees at its Hod Hasharon semiconductor R&D site, a reduction that affects roughly a quarter of the 400-person team. The facility, central to Sony’s low-power wireless chip development, was originally created after the company acquired Israeli startup Altair Semiconductor for $212 million back in 2016.
This latest move is part of a global restructuring strategy that has already impacted staff in Sony’s gaming and electronics divisions. Although Sony hasn’t released an official statement, sources familiar with the situation say the layoffs are driven by a need to streamline operations and maintain profitability in an increasingly competitive landscape.
Facility Still Seen as a Strategic Asset
Despite the downsizing, the Hod Hasharon center is not being shut down. Led by executive Nohik Semel, the center continues to focus on compact, low-power chipsets used in wireless applications like smart utility meters. These chips are essential to energy-efficient infrastructure and the broader Internet of Things (IoT) market.
Industry analysts believe Sony is “rightsizing rather than retreating,” trimming less essential roles while retaining core technical expertise. The goal appears to be reallocating resources toward higher-growth areas like AI and advanced imaging.
A Familiar Playbook for Sony
Sony’s latest cuts mirror its past restructuring efforts. In 2008, the company slashed 8,000 jobs and halted contractor hiring to cope with a financial downturn. Again in 2014, it executed layoffs across marketing and other non-core areas, saving $250 million.
The pattern? Cut costs where possible, keep innovation alive where it matters most.
This time, the logic remains consistent: scale down in lower-growth areas and double down on strategic technologies where Sony sees future value.
Chip Industry Grows, But Not for Everyone
On the surface, the semiconductor industry is thriving. Analysts predict the global market will hit $697 billion by 2025, growing at a solid 11.2 percent annually.
But not all chip companies are sharing equally in that growth:
- Nvidia is seeing massive gains in AI chips.
- Intel and even Microsoft have cut staff recently, citing cost controls.
- Many legacy chip segments are facing margin pressures and talent shortages.
Sony’s move aligns with a wider trend of companies focusing more narrowly on profitable, innovation-driven segments rather than spreading resources thin.
TechKV’s Takeaway
I get it. Layoffs are never easy to watch, especially from a household name like Sony. But here’s the deal: this isn’t panic mode, it’s strategy. Sony is clearly refocusing on what matters most in its chip business and pulling back from areas that aren’t giving high returns.
What really jumps out is how this mirrors a growing pattern across tech: even in good times, companies are under pressure to do more with less. With AI exploding and traditional segments tightening, it’s no surprise that Sony is trimming in places like Hod Hasharon while eyeing the next big wave.
This story’s not about retreat. It’s about recalibration.
