Intel is planning layoffs in its Data Center and AI Group as part of a broader restructuring effort, even as the division posted a 22% jump in revenue. The cuts come under new CEO Lip-Bu Tan, who is pushing to flatten the company's workforce.
Why the cuts are coming
The Data Center and AI Group has been a bright spot for Intel, but the company's overall headcount has grown in recent years. Tan, who took over in March, has signaled that he wants a leaner organization. The layoffs are part of that push, though Intel hasn't said how many jobs will be eliminated or when the reductions will start.
Intel's restructuring isn't limited to this one group. The company has been trimming across divisions, but the Data Center and AI unit's strong revenue growth makes the cuts there notable. Tan appears to be prioritizing efficiency over top-line growth.
Employees in the Data Center and AI Group are waiting for details. Intel hasn't announced a timeline or whether there will be severance packages. The company is expected to provide more information in the coming weeks, possibly during its next earnings call.
Intel's stock has been under pressure as it tries to regain ground in the chip market. The layoffs are one of several moves Tan is making to reshape the company. Others include potential divestitures and a renewed focus on manufacturing.
For now, the question is how deep the cuts will go and whether the 22% revenue growth in the Data Center and AI Group will be enough to shield some workers. Intel hasn't said.
