Intel to cut jobs in Data Center and AI Group: What the chipmaker said

Intel has reportedly started a new round of layoffs, this time targeting its data center group. According to reports, Intel told employees in its data center group that it plans a fresh round of job cuts. The statement reportedly talks about "aligning its organization" for "simplicity and speed." It is not yet clear how many jobs Intel plans to eliminate with these latest cuts but chipmaker said that they won’t affect its product commitments or roadmaps. Intel is set to announce its earnings later this week.“As part of our broader strategy to become a more focused and efficient company, (the data center group) is aligning its organization to ensure it has the right roles and skills in place to position the business for long-term success,” Intel said in a written statement to The Oregonian. The company said that it expects the restructuring will enable it to operate with greater simplicity and speed. The Intel statement added, “We are committed to treating all impacted employees with respect and providing resources to support them through this transition,” Intel said.Intel's Data Center and AI group focuses on server CPUs, custom AI chips and data center architecture. During the first quarter of 2026, revenue from the division increased 22% year over year to total $5.05 billion.Intel headcount has gone down by 40%Over the last four years, Intel’s global workforce has gone down by almost 40%, from nearly 132,000 employees in 2022 to around 81,000 now. The chip giant has eliminated some jobs by divesting parts of its business and others by laying off tens of thousands of positions worldwide over the past two years. So far, Intel's U.S. layoffs have mainly occurred in California, Oregon, Arizona and Texas. Most of these were enacted in 2025.Intel appointed Lip-Bu Tan as CEO in March 2025. At a town hall meeting following his appointment CEO Tan told employees that the company will need to make "tough decisions". Tan signaled in a memo Intel published Wednesday that he plans to keep control over the factories, which remain financially and operationally separate from the design business and restore Intel’s position as a “world-class foundry.”CEO Lip-Bu Tan says Intel needed to reduce layers of management so the company can make decisions more rapidly and move faster to develop new technologies. Intel’s stock has seen significant gains recently after struggling for years, having relinquished its dominant market position.Intel to make chips for AppleLast month, President Donald Trump said that Intel had agreed to a deal with Apple to design and build chips in the US. “Stupid Presidents took our Economy for granted, and let Taiwan and others steal our Semiconductor Factories,” Trump said in a post on Truth Social. “Apple has agreed to work with Intel to design and build its Chips in America.” Trump's announcement was followed by reports that Intelhas started production of its most-advanced chip node, bringing the company one step closer to a possible deal to make some chips for Apple devices.Intel to announce quarterly results this weekIntel is set to announce its second-quarter results after the closing bell on Thursday (June 23), and host a conference call at 5 p.m. Analysts expect strong results and a bright outlook sent shares flying last quarter. Investors have also been cheering the chipmaker’s recent deals, including with Google and Elon Musk’s Terafab project. Intel’s stock has seen significant gains recently after struggling for years, having relinquished its dominant market position. The stock has surged 464% in the past 12 months.Get the latest technology news and updates. Download the TOI App.