Intel Corp. (NASDAQ:INTC) has launched another round of layoffs, this time affecting employees in its Data Center and AI Group, as CEO Lip-Bu Tan continues a sweeping restructuring effort just days before the chipmaker is set to report second-quarter earnings.
Intel Targets Data Center and AI Workforce
The company has not disclosed how many employees will be impacted by the latest job cuts.
Intel said the move is part of its broader effort to streamline operations and position the business for long-term growth, rather than a shift in its product strategy, Seeking Alpha reported on Monday.
An Intel spokesperson reportedly said that the company is becoming more “focused and efficient” by aligning the organization with the “right roles” and skills needed for future success.
The spokesperson added that Intel remains committed to supporting affected employees through the transition.
Intel did not immediately respond to Benzinga’s request for comments.
The Data Center and AI Group oversees Intel’s server processors, custom AI chips and data center technologies, making it one of the company’s most strategically important businesses.
Layoffs Come Despite Strong AI Business Growth
The latest workforce reduction comes even though Intel’s data center business has been gaining momentum. During the first quarter of 2026, the division generated $5.05 billion in revenue, up 22% from a year earlier.
The layoffs are the latest step in Tan’s turnaround plan after he succeeded Pat Gelsinger as CEO in March 2025. As part of that strategy, Intel announced plans to reduce its global workforce by about 15%.
More than 5,000 U.S.-based employees have already been laid off, with most reductions occurring in California, Oregon, Arizona and Texas throughout 2025.
Investors Await Intel Earnings
The restructuring has coincided with a sharp rally in Intel shares, which have climbed more than 317% over the past year as investors have backed Tan’s efforts to revive the company.
Intel is scheduled to report second-quarter earnings after the market closes on July 23.
Wall Street expects adjusted earnings of 22 cents per share on revenue of $14.45 billion, compared with a loss of 10 cents per share on revenue of $12.86 billion during the same quarter last year.
The latest cuts also come as tech layoffs remain elevated across the industry. According to Layoffs.fyi, the sector has eliminated 121,326 jobs so far in 2026, nearly matching the 122,606 layoffs recorded during all of 2025.
Price Action: Intel shares closed Monday up 2.13% at $97.06 and rose another 0.60% to $97.64 in after-hours trading, according to Benzinga Pro.
According to Benzinga Edge Rankings, Intel ranks in the 98th percentile for Momentum, reflecting a strong medium- and long-term price trend despite recent short-term weakness.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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