Intel layoffs: Chipmaker to begin fresh round of job cuts in data centre division
Intel has initiated another round of layoffs, this time affecting employees in its data center division. Staff at the unit were informed that the company was restructuring the business as part of a broader effort to streamline operations, according to a Business Insider report.
The chipmaker said the changes were aimed at “aligning its organization” for “simplicity and speed.” While Intel did not disclose how many employees would be affected, it did say that the latest restructuring would not impact product commitments or its long-term roadmap.
Intel says restructuring is part of long-term strategy
“As part of our broader strategy to become a more focused and efficient company, (the data center group) is streamlining its organization to ensure it has the right roles and skills to position the business for long-term success,” Intel said in a written statement to The Oregonian.
The organizational changes are expected to help it operate with greater “simplicity and speed”, the company added.
“We are committed to treating all impacted employees with respect and providing resources to support them through this transition,” Intel said.
Data center business remains a significant source of revenue
Intel’s Data Center and AI Group develops server processors, custom AI chips, and data center infrastructure. In the first quarter of 2026, the division reported revenue of $5.05 billion, up 22% year over year.
Intel workforce reduced by almost 40%
Intel’s global workforce has shrunk significantly over the past four years, falling from approximately 132,000 employees in 2022 to approximately 81,000 currently.
The decrease was due to business liquidations and large-scale layoffs in the last two years. In the US, most layoffs occurred in California, Oregon, Arizona and Texas, with the majority implemented in 2025.
CEO Lip-Bu Tan signals more changes
Intel appointed Lip-Bu Tan as general manager in March 2025. Shortly after taking over, Tan told employees at a town hall meeting that he would have to make “tough decisions” as part of the company’s turnaround strategy.
Intel continues to expand its contract chip manufacturing business as it looks to produce semiconductors for other companies.
The chipmaker on Tuesday announced the first publicly listed customer for its foundry business since Lip-Bu Tan became chief executive. California-based cybersecurity firm Fortinet will work with Intel to develop the next generation security chip. The announcement sent Intel’s shares up more than 6%, according to CNBC.
Last year, the US government bought a nearly 10% stake in Intel, becoming the company’s largest shareholder. The stock soared after President Donald Trump discussed the deal at the White House, gaining nearly 179% since the beginning of the year.
