Intel initiates new round of layoffs centering on its data center group

Intel (INTC) has initiated a new round of layoffs, this time targeting its data center group.

It is unknown at this time how many employees will be affected. Intel indicated the cuts will not alter product commitments or company roadmaps. Instead, Intel expects the changes to create more efficiency. 

"As part of our broader strategy to become a more focused and efficient company, our 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," said an Intel spokesperson to Seeking Alpha. "We are committed to treating all impacted employees with respect and providing resources to support them through this transition." 

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 for the segment increased 22% year over year to total $5.05B.

When current Intel CEO Lip-Bu Tan replaced Pat Gelsinger as CEO in March 2025, he said it was not a simple task and implemented a plan to reduce its global headcount by 15%. So far, more than 5,000 employees based in the U.S. have been let go.

So far, Intel's U.S. layoffs have mainly occurred in California, Oregon, Arizona and Texas. Most of these were enacted in 2025.

Intel shares have surged over that time frame, rocketing more than 300% over the past year. Intel is scheduled to release its second quarter financial results post-market on July 23. A consensus estimate expects adjusted earnings per share of $0.22 on revenue of $14.45B. During the same quarter last year, Intel reported a loss of $0.10 per share on revenue of $12.86B.

The tracker Layoffs.fyi reports that 121,326 layoffs have occurred in the tech sector so far in 2026. During the entirety of 2025, it recorded 122,606 layoffs across the sector.