Intel is laying off workers in its data center division despite strong recent performance

Date:
Wed, 22 Jul 2026 11:15:00 +0000

Description:
Intel reportedly gearing up to lay off data center workers in a bid for operational efficiency, despite strong performance.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Intel's data center business
has seen tremendous growth thanks to ongoing AI demands Layoffs would likely target operational efficiency over division reduction Share prices and quarterly earnings are back to being in a good place Intel has reportedly warned workers in its Data Center Group that another round of layoffs could
be coming soon, adding to the major layoffs that already came in 2024 and
2025 .

The company has not disclosed the number of jobs being eliminated, when they would leave, or any other finer details, but Oregon Live reports that the restructuring would reduce organizational complexity and allow the division
to operate more quickly. However, the changes still come as a surprise, with the Data Center Group currently one of Intel's stronger-performing
businesses. Latest Videos From Watch full video here: Intel set to lay off data center business workers More broadly, warnings of sector layoffs come as more of a shock with data center hardware in hot demand and supply chains under immense pressure.

"As part of our broader strategy to become a more focused and efficient company, (the 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," the company told Oregon Live . You may like 'We are
making clear, strategic investments': Cisco cuts 4,000 jobs, even as AI
orders surge Oracle admits it has cut 21,000 jobs, admits 'deployment of AI technologies across our operations have resulted, and may continue to result, in reductions to our workforce' Intel possibly selling 'low-expectation'
chips is a sign of CPU price hikes

New CEO Lip-Bu Tan had already warned of major workforce restructuring in a drive for organizational efficiency.

This comes against a healthy backdrop for Intel, with first-quarter revenue for the data center division up 22% year-over-year. In fact, Intel's company share price has recovered dramatically in recent months following support
from the US government. From lows of under $20 throughout parts of 2025, company shares have since grown around 5x to $105.45 at the time of writing. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

That growth is set to continue, with Intel set to announce its second-quarter results on July 23 2026, targeting revenue of $13.8 billion to $14.8 billion, up from $13.6 billion in its first quarter. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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