The chipmaker told staff in its data centre unit it is restructuring for efficiency. The division's revenue rose 22% to $5.05 billion in Q1 2026, but Intel's workforce has fallen to about 81,000 from 132,000 in 2022.
Intel has begun another round of job cuts, this time inside its data centre division. Staff in the unit were told the company is restructuring to improve efficiency, according to a Business Insider report.
Intel said the changes are meant to "align its organisation" for "simplicity and speed." The chipmaker did not say how many employees will be affected but said the cuts will not change its product commitments or long-term plans.
In a written statement to The Oregonian, Intel said: "As part of our broader strategy to become a more focused and efficient company, (the data center group) is aligning its organisation to ensure it has the right roles and skills in place to position the business for long-term success."
The company said the changes should help it run with greater "simplicity and speed."
"We are committed to treating all impacted employees with respect and providing resources to support them through this transition," Intel said.
Intel's Data Center and AI Group makes server processors, custom AI chips and data centre infrastructure. The division posted revenue of $5.05 billion in the first quarter of 2026, up 22% from a year earlier.
Intel's headcount has fallen sharply over the past four years. The company employed nearly 132,000 people in 2022; it now has around 81,000.
The reduction comes from both business sales and large layoffs over the past two years. In the U.S., most cuts have been in California, Oregon, Arizona and Texas, with the bulk carried out in 2025.
CEO Lip-Bu Tan took over in March 2025. Shortly after, he told employees at a town hall that Intel would have to make "tough decisions" as part of its turnaround.
Intel is also expanding its contract chip manufacturing business. On Tuesday, the company announced the first publicly named foundry customer since Tan became CEO. Cybersecurity firm Fortinet will work with Intel to build its next-generation security chip. The news pushed Intel's shares up more than 6%, CNBC reported.
Last year, the U.S. government took a stake of nearly 10% in Intel, making it the company's largest shareholder. The stock surged after President Donald Trump announced the deal at the White House and has gained roughly 179% since the start of the year.
Intel's stock page carries an Alpha Score of 36 out of 100, a Mixed rating.
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