Major American company, Intel, is being sued by the Anti-Defamation League for discrimination in its first-ever legal action.

Major American company, Intel, is being sued by the Anti-Defamation League for discrimination in its first-ever legal action.
Major American company, Intel, is being sued by the Anti-Defamation League for discrimination in its first-ever legal action.
  • Intel is facing a lawsuit from a former Israeli employee who claims the company created a hostile workplace, discriminated against him, and wrongfully terminated him. The Anti-Defamation League has joined the lawsuit, alleging that Intel supported two executives who publicly posted antisemitic propaganda related to the Israel-Gaza war.
  • For the first time in its 100-year history, the ADL has filed a lawsuit against a significant American corporation.
  • According to ADL CEO Jonathan Greenblatt, it is our responsibility to utilize all available resources, including legal action, in order to address issues in the workplace.
Anti-Defamation League joins discrimination lawsuit against Intel

For the first time in its century-plus history, the Anti-Defamation League is joining a lawsuit brought by the law firm of Wigdor on behalf of a former Israeli employee of a Fortune 500 technology firm.

Intel is being sued for not responding to public antisemitism posted by executives and flagged by an Israeli employee, who was later moved into a position reporting to one of the executives and ultimately terminated from his job.

According to ADL CEO Jonathan Greenblatt, the employee was not only discriminated against but also targeted and victimized, as stated in an interview on CNBC's "Squawk Box" on Thursday, which led to ADL's decision to sue Intel.

Intel has a longstanding culture of diversity and inclusion and does not tolerate hate speech of any kind, as stated in its code of conduct. The company does not specifically comment on ongoing litigation.

Intel has been operating in Israel for 50 years, investing over $50 billion and employing more than 11,700 Israelis. The company's Intel operations generated $8.7 billion in exports in 2022, accounting for 5.5% of Israel's high-tech exports and 1.75% of its GDP.

Intel has suspended $15 billion expansion plans for a major plant in Israel, but remains fully committed to the region and the war is not a factor. The company is currently undergoing a major restructuring to shore up its balance sheet, slashing capital spending and laying off more than 15% of its employees as part of a $10 billion cost-reduction plan.

Rise in antisemitism at work, in business world

The increase in antisemitic incidents at work is linked to broader social and political conflicts, according to the ADL, which reported a 140% rise in harassment, vandalism, and assault cases in the U.S. in 2023.

Greenblatt stated during a CNBC interview that the environment for antisemitism is becoming more intense and has intensified since the invasion of Israel by Hamas forces on 10-7.

In the last three months of 2023, the ADL recorded a significant increase in incidents across Jewish institutions, colleges, and K-12 schools, among other locations. Additionally, the ADL counted 255 Israel-related incidents at businesses in 2023, many of which occurred at local establishments, resulting in Jewish customers and employees experiencing antisemitic harassment.

Anti-Israel protests recorded a significant number of antisemitic incidents in shopping malls, businesses that manufacture weapons for the Israeli military, and businesses targeted by the BDS movement.

Greenblatt characterized the Intel suit as a "bold move" and stated during a CNBC interview that the level of antisemitism in corporations has reached an all-time high. "We've witnessed bigotry in boardrooms and businesses," he said. "It's incorrect to believe that targeting or harassing individuals based on their Jewish identity or faith is simply political speech, even in a corporate setting like Intel," he added.

Greenblatt stated via email that ADL will use every tool available, including the courts, to combat antisemitism and hate in the workplace. If employers fail to meet their legal obligations in protecting Jewish employees, ADL will not hesitate to act.

The ongoing conflict between Israel and Gaza has sparked a surge in antisemitism and protests, which has affected daily life in the US, from college campuses to internal dissent within major US companies. This is just the latest example of a divisive social and political issue that has spilled over into the workplace and added to the pressures faced by corporate executives in recent years. In April, Google fired 28 employees after protests tied to its sale of technology to Israel. Additionally, Google also fired an employee last spring who interrupted a speech by an Israeli executive.

"Greenblatt stated, "I have my sympathies with CEOs. I have a large team of diverse individuals who work for me, and if they cannot perform their duties and create value for shareholders, then perhaps they do not belong. We must acknowledge the challenging environment, but it is crucial to maintain focus on our objectives." He added, "While individuals may have differing opinions, these views should not impede their ability to execute their tasks and meet customer expectations in the workplace.""

by Alexandra Ferreyros, CNBC Intern

Politics