Intel Cuts Data Center and AI Staff Amid Turnaround

Intel Corporation announced a new round of workforce reductions targeting its Data Center and AI group, which manages server CPUs, custom AI chips, and data center architecture. The company described the restructuring as a move to increase simplicity and speed to ensure the business is positioned for long-term success. While the company did not disclose the specific number of positions cut in this round, it has reduced its total headcount by approximately 40% since 2022, dropping from roughly 132,000 employees to about 81,000.

Intel Corporation stated that the cuts will not affect product roadmaps or customer commitments. These layoffs occur ahead of the company's second-quarter earnings report on July 23, despite the data center group reporting first-quarter 2026 revenues exceeding $5 billion.

The restructuring is part of a turnaround effort led by CEO Lip-Bu Tan. Parallel to these internal cuts, the company is pursuing growth through partnerships with Fortinet and potential deals with Tesla. Additionally, President Donald Trump announced that Apple agreed to work with Intel to design and build chips within the United States, criticizing previous administrations for allowing semiconductor factories to move abroad.