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

The cuts will target the Data Center Group, a unit that has seen recent revenue growth, according to sources familiar with the matter. The company is expected to announce the layoffs in the coming weeks, though the exact number of affected positions has not been disclosed.

This round follows a broader restructuring that has already eliminated tens of thousands of roles across the company. Intel has been trimming its workforce to reduce costs and improve operational efficiency, while maintaining its long-term investments in artificial intelligence and product development.

The Data Center Group, which supplies server chips to cloud providers and enterprises, has been a bright spot for Intel, with sales rising in recent quarters. Despite that, the company is pressing ahead with cuts, signaling a focus on streamlining operations rather than responding to a downturn in that segment.

Intel has said the restructuring will not alter its strategic roadmap for AI and other key technologies. The company continues to invest in new manufacturing processes and chip designs, even as it reduces headcount in certain areas.

The layoffs are part of a plan announced earlier this year to cut 40,000 jobs by the end of 2025. Intel has already reduced its workforce significantly, and this latest move underscores the depth of the cost-cutting effort.