Intel's latest job cuts a sign that CEO Bu-Tan is still reorganizing structure: Wedbush

Intel's (INTC) newest round of job cuts, this time in its data center group, are a sign that CEO Lip Bu-Tan is still reorganizing the company's structure, Wedbush Securities said.

“Intel says its product commitments and roadmap are unchanged and framed the move as realigning DCAI to be leaner, part of a restructuring that has taken total headcount down roughly 40% over four years, from ~132k in 2022 to ~81k,” Wedbush Securities analyst Matt Bryson wrote in a note to clients. “We see this news as a continued sign that Lip Bu is not finished reorganizing Intel's structure (regardless of some signs of improvement in execution and improving underlying demand conditions).”

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,” an Intel spokesperson told 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.

The semiconductor giant is set to report second-quarter results after the close of trading on July 23. A consensus of analysts expects Intel to earn $0.22 per share on $14.45B in revenue.