Intel Hit by More Layoffs: Data Center Group Facing Cuts Despite Growth

The cuts, which are expected to affect employees in the Data Center Group, come as Intel continues a company-wide restructuring that has already eliminated 40,000 positions. The group has seen recent growth, but the layoffs are part of a broader effort to improve operational efficiency and streamline execution.

Intel said the downsizing will not change its long-term artificial intelligence and product development plans. The company remains committed to its strategic roadmap, which includes advancing AI capabilities across its product portfolio.

The Data Center Group is a key revenue driver for Intel, competing with rivals like AMD and Nvidia in the server chip market. Despite the growth, Intel is under pressure to reduce costs and refocus its resources on priority areas.

The layoffs are the latest in a series of workforce reductions at Intel, which has been grappling with a changing semiconductor market and increased competition. The company has not specified how many positions will be cut in the Data Center Group or when the reductions will take effect.