Intel layoffs: Chipmaker begins fresh round of job cuts in data centre division

Published 22 July 2026 · tech

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

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. Also Read | KPMG plans to lay off hundreds of workers — what we know so far 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.