The company informed employees in its Data Center and AI Group of the job cuts, following major workforce reductions in 2024 and 2025. Intel has not disclosed how many positions will be eliminated. The company may reveal the number of affected employees when it reports second-quarter earnings.
Intel says it is realigning its Data Center and AI Group as part of a broader effort to become a more focused and efficient organisation, ensuring it has the right roles and skills in place for long-term success. The chipmaker said the cuts will not affect its product commitments or roadmaps.
The reported cuts are notable because they affect a business that posted strong revenue growth. Intel's Data Center and AI Group focuses on server CPUs, custom AI chips, and data centre architectures, and reported first-quarter 2026 revenue of $5.05 billion, up 22% year over year.
The layoffs are the latest step in CEO Lip-Bu Tan's turnaround plan after he succeeded Pat Gelsinger in March 2025. Tan has said Intel needed to reduce layers of management so the company can make decisions more rapidly and move faster to develop new technologies.
Intel's global workforce has declined by nearly 40% over the last four years, from nearly 132,000 employees in 2022 to around 81,000 now, with job losses coming through both business divestitures and tens of thousands of position eliminations worldwide.
For working professionals in tech and adjacent industries, the cuts are a reminder that strong divisional performance does not guarantee job security during a top-down restructuring. Intel assured that the reduction will not affect its business commitments or plans to launch new products. Teams in data, AI infrastructure, and enterprise technology roles should watch for how Intel's headcount strategy shapes hiring and skills demand across the broader sector.
