Intel planning layoffs, says it is a strategy for long term success
Intel is planning another round of layoffs as it restructures its data center business, saying the move is part of a long-term strategy to become a more focused and efficient company. The announcement comes amid a fresh wave of job cuts across the tech industry as firms continue to invest heavily in AI.
Intel is preparing for another round of layoffs as the chipmaker continues its efforts to streamline operations and cut costs. The latest job cuts will affect employees in the company's Data Center Group (DCG), with Intel saying the move is part of a broader plan to make the business more focused and better positioned for the future. The company has not disclosed how many employees will be impacted, but it said the restructuring is aimed at building the right team and improving execution without disrupting its product plans.
Confirming the layoffs, an Intel spokesperson told Business Insider that the company is changing its data centre business as part of its long-term strategy. "As part of our broader strategy to become a more focused and efficient company, Intel's data center group (DCG) is aligning its organisation to ensure it has the right roles and skills in place to position the business for long-term success," the spokesperson said.
Intel added that the restructuring will not affect the division's product roadmap or customer commitments. According to a person familiar with the matter, the changes are intended to simplify the organisation and make the business more efficient. The company also said it would support affected employees during the transition.
"Intel is committed to treating all impacted employees with respect and providing resources to support them through this transition," the spokesperson added.
This is the latest in a series of workforce reductions at Intel. Last year, the company cut at least 15 per cent of its factory workforce, affecting more than 5,000 employees across four US states. Before that, in August 2024, Intel announced plans to eliminate more than 15,000 jobs as part of a cost-saving programme aimed at delivering $10 billion in savings by 2025. At the time, Intel had said reducing organisational complexity would help engineers move faster and improve execution.
Tech layoffs continue as companies double down on AI
Intel's latest announcement comes as layoffs continue across the technology industry, with many companies trimming their workforce while increasing spending on artificial intelligence and cloud infrastructure.
Earlier today, Amazon cut jobs in parts of its Artificial General Intelligence (AGI) division. Explaining the move, the company said it remains deeply committed to AI but is narrowing its focus to projects that matter most to customers.
"We have been building large AI models for several years, and it remains one of the most important things we're working on," an Amazon spokesperson said, adding that the company is making "some difficult decisions" to move faster on its priority initiatives.
Earlier this year, Meta announced plans to cut around 8,000 job (roughly 10 per cent of its workforce) while significantly increasing its AI investments. Oracle also reportedly laid off thousands of employees across multiple teams, with several workers describing the process as sudden and unexpected. Microsoft, meanwhile, introduced a voluntary buyout programme for around 7 per cent of its US workforce as it continues investing heavily in AI infrastructure and data centres.
Intel is preparing for another round of layoffs as the chipmaker continues its efforts to streamline operations and cut costs. The latest job cuts will affect employees in the company's Data Center Group (DCG), with Intel saying the move is part of a broader plan to make the business more focused and better positioned for the future. The company has not disclosed how many employees will be impacted, but it said the restructuring is aimed at building the right team and improving execution without disrupting its product plans.
Confirming the layoffs, an Intel spokesperson told Business Insider that the company is changing its data centre business as part of its long-term strategy. "As part of our broader strategy to become a more focused and efficient company, Intel's data center group (DCG) is aligning its organisation to ensure it has the right roles and skills in place to position the business for long-term success," the spokesperson said.
Intel added that the restructuring will not affect the division's product roadmap or customer commitments. According to a person familiar with the matter, the changes are intended to simplify the organisation and make the business more efficient. The company also said it would support affected employees during the transition.
"Intel is committed to treating all impacted employees with respect and providing resources to support them through this transition," the spokesperson added.
This is the latest in a series of workforce reductions at Intel. Last year, the company cut at least 15 per cent of its factory workforce, affecting more than 5,000 employees across four US states. Before that, in August 2024, Intel announced plans to eliminate more than 15,000 jobs as part of a cost-saving programme aimed at delivering $10 billion in savings by 2025. At the time, Intel had said reducing organisational complexity would help engineers move faster and improve execution.
Tech layoffs continue as companies double down on AI
Intel's latest announcement comes as layoffs continue across the technology industry, with many companies trimming their workforce while increasing spending on artificial intelligence and cloud infrastructure.
Earlier today, Amazon cut jobs in parts of its Artificial General Intelligence (AGI) division. Explaining the move, the company said it remains deeply committed to AI but is narrowing its focus to projects that matter most to customers.
"We have been building large AI models for several years, and it remains one of the most important things we're working on," an Amazon spokesperson said, adding that the company is making "some difficult decisions" to move faster on its priority initiatives.
Earlier this year, Meta announced plans to cut around 8,000 job (roughly 10 per cent of its workforce) while significantly increasing its AI investments. Oracle also reportedly laid off thousands of employees across multiple teams, with several workers describing the process as sudden and unexpected. Microsoft, meanwhile, introduced a voluntary buyout programme for around 7 per cent of its US workforce as it continues investing heavily in AI infrastructure and data centres.
Intel is preparing for another round of layoffs as the chipmaker continues its efforts to streamline operations and cut costs. The latest job cuts will affect employees in the company's Data Center Group (DCG), with Intel saying the move is part of a broader plan to make the business more focused and better positioned for the future. The company has not disclosed how many employees will be impacted, but it said the restructuring is aimed at building the right team and improving execution without disrupting its product plans.
Confirming the layoffs, an Intel spokesperson told Business Insider that the company is changing its data centre business as part of its long-term strategy. "As part of our broader strategy to become a more focused and efficient company, Intel's data center group (DCG) is aligning its organisation to ensure it has the right roles and skills in place to position the business for long-term success," the spokesperson said.
Intel added that the restructuring will not affect the division's product roadmap or customer commitments. According to a person familiar with the matter, the changes are intended to simplify the organisation and make the business more efficient. The company also said it would support affected employees during the transition.
"Intel is committed to treating all impacted employees with respect and providing resources to support them through this transition," the spokesperson added.
This is the latest in a series of workforce reductions at Intel. Last year, the company cut at least 15 per cent of its factory workforce, affecting more than 5,000 employees across four US states. Before that, in August 2024, Intel announced plans to eliminate more than 15,000 jobs as part of a cost-saving programme aimed at delivering $10 billion in savings by 2025. At the time, Intel had said reducing organisational complexity would help engineers move faster and improve execution.
Tech layoffs continue as companies double down on AI
Intel's latest announcement comes as layoffs continue across the technology industry, with many companies trimming their workforce while increasing spending on artificial intelligence and cloud infrastructure.
Earlier today, Amazon cut jobs in parts of its Artificial General Intelligence (AGI) division. Explaining the move, the company said it remains deeply committed to AI but is narrowing its focus to projects that matter most to customers.
"We have been building large AI models for several years, and it remains one of the most important things we're working on," an Amazon spokesperson said, adding that the company is making "some difficult decisions" to move faster on its priority initiatives.
Earlier this year, Meta announced plans to cut around 8,000 job (roughly 10 per cent of its workforce) while significantly increasing its AI investments. Oracle also reportedly laid off thousands of employees across multiple teams, with several workers describing the process as sudden and unexpected. Microsoft, meanwhile, introduced a voluntary buyout programme for around 7 per cent of its US workforce as it continues investing heavily in AI infrastructure and data centres.
