Intel layoffs: Chipmaker to begin fresh round of job cuts in data centre division
Intel Layoffs: The company added that the organisational changes are expected to help it operate with greater ‘simplicity and speed.’
Intel has launched another round of job cuts, this time affecting employees in its data centre division. According to a Business Insider report, staff in the unit were informed that the company is restructuring the business as part of a broader effort to streamline operations.
The chipmaker said the changes are aimed at "aligning its organisation" for "simplicity and speed". While Intel has not disclosed how many employees will be affected, it said the latest restructuring will not impact its product commitments or long-term roadmap.
Intel says restructuring is part of long-term strategy
In a written statement to The Oregonian, Intel said: “As part of our broader strategy to become a more focused and efficient company, (the data center group) is aligning its organisation to ensure it has the right roles and skills in place to position the business for long-term success.”
The company added that the organisational changes are expected to help it operate with greater "simplicity and speed".
"We are committed to treating all impacted employees with respect and providing resources to support them through this transition," Intel said.
Data centre business remains a key revenue driver
Intel's Data Center and AI Group develops server processors, custom AI chips and data centre infrastructure. During the first quarter of 2026, the division reported revenue of $5.05 billion, up 22% year on year.
Intel workforce has shrunk by nearly 40%
Intel's global workforce has declined significantly over the past four years, falling from nearly 132,000 employees in 2022 to around 81,000 currently.
The reduction has been driven by both business divestments and large-scale layoffs carried out over the past two years. In the US, most job cuts have taken place in California, Oregon, Arizona and Texas, with the majority implemented during 2025.
CEO Lip-Bu Tan signals more changes
Intel appointed Lip-Bu Tan as its chief executive in March 2025. Soon after taking charge, Tan told employees during a town hall meeting that the company would have to make "tough decisions" as part of its turnaround strategy.
Intel is continuing to expand its contract chip manufacturing business as it seeks to produce semiconductors for other companies.
On Tuesday, the chipmaker announced the first publicly named customer for its foundry business since Lip-Bu Tan became chief executive. California-based cybersecurity firm Fortinet will work with Intel to develop its next-generation security chip. The announcement lifted Intel's shares by more than 6%, according to CNBC.
Last year, the US government acquired a stake of nearly 10% in Intel, becoming the company's largest shareholder. The stock surged after President Donald Trump discussed the agreement at the White House and has gained around 179% since the beginning of the year.
About the Author
Kanishka Singharia
Kanishka Singharia is a Senior Content Producer at Mint with a passion for news, trends, and the stories shaping the digital world. She specialises in spotting viral narratives by constantly tracking social media platforms and turning them into engaging, reader-friendly stories. Her work ranges from fast-paced breaking updates to sensitive human-interest features, blending speed with clarity.
With over four years of experience in news and trend reporting, Kanishka has worked with leading organisations such as Hindustan Times and Times Now. She moves seamlessly between profiling business leaders and telling the stories of everyday people, covering national developments just as effortlessly as the memes and conversations that dominate online culture.
She also reports on real estate developments and civic challenges in major urban hubs like Bengaluru, Delhi, and Gurugram. Her coverage frequently explores the struggles of startup founders, inspiring journeys of CEOs, and the experiences of candidates dealing with the complexities of visa processes.
Kanishka holds an undergraduate degree in Journalism from Delhi University and a diploma from the Indian Institute of Mass Communication. Rarely offline, she spends much of her time scrolling through X, LinkedIn, Reddit, Instagram, and Facebook in search of the next big story. When she finally logs off, she enjoys binge-watching shows and exploring cafes in pursuit of good food and better conversations.
Source: Livemint — Companies
