Intel layoffs hit data centers, but company says it won’t affect production
Intel’s CEO promised to reduce overall headcount by 15%.
Image by Getty/Justin Sullivan
- Intel is cutting jobs in its data center and AI group as CEO Lip-Bu Tan pushes efficiency.
- The company says the cuts will help align roles and skills, while its product roadmap remains unchanged.
- The layoffs come despite strong demand for data center and AI hardware amid rapid AI adoption.
- Intel’s cuts reflect a wider tech layoff trend, with companies reducing staff while investing in AI-driven restructuring.
Key Takeaways by nexos.ai, reviewed by Cybernews staff.
Intel is cutting jobs across its data center and AI group as CEO Lip-Bu Tan looks to make improvements.
Another wave of layoffs is hitting Intel as the company follows through on workforce reductions promised by its latest CEO, Lip-Bu Tan.
When taking on the role, Tan pledged to change Intel for the better, positioning it as an engineering-first company that will operate like a start-up.
An Intel spokesperson told Seeking Alpha that the job cuts are “part of our broader strategy to become a more focused and efficient company.”
“Our Data Center Group is aligning its organization to ensure it has the right roles and skills in place to position the business for long-term success.”
Just over a year later, the semiconductor giant is reportedly laying off an unknown number of employees who work with the hardware that powers cloud computing, data centers, and AI.
Hardware used in data centers and AI is scarce due to the widespread AI adoption, which has spiked demand for CPUs, GPUs, AI chips, and other related hardware.
While this new round of layoffs might spark concerns about hardware production, an Intel spokesperson said “it remains committed to its product roadmap,” meaning the changes shouldn’t affect production.
Cybernews has reached out to Intel for comment.
Stay updated with our latest stories and follow us on social media
Be the first to discover new stories, ideas, and updates from our team.
Tan promised to make the company more efficient by reducing the company’s workforce by 15%, according to Seeking Alpha.
That was in 2025, and since then, Intel has cut staff at its California sites, mainly in Sacramento and San Francisco, according to tech layoff tracker Layoff.fyi.
Tech giants sacking employees in favor of AI
This round is indicative of a wider trend, seeing thousands of tech employees losing their jobs.
Nearly 122,000 employees have been laid off from roughly 234 separate tech companies this year alone, according to Layoff. fyi.
Companies like Microsoft have announced layoffs affecting thousands of employees, with waves affecting 2.5% of the company’s global workforce. 220,000 Microsoft staff are likely to be impacted.
Microsoft has also cut roughly 3,200 Xbox jobs after its Game Pass subscription service failed to return the results that executives anticipated.
Cybersecurity unicorn Snyk announced its 4th round of layoffs, affecting 90 employees in Israel and worldwide, as it reorganizes its operations to catch up with vibecoding platforms like Claude Code.
A recent report shows that US employers have announced nearly 84,000 job cuts since April 2026, which is a 38% increase from the layoffs recorded in March.
The technology sector is leading the workforce reduction with 33,361 job cuts in April and a total of 85,411 this year. The number marks a 33% increase from the 64,118 layoffs announced in the same period in 2025.
Up to 26% of the layoffs in April are attributed to enterprise AI adoption. However, it is unclear whether the wide adoption of the technology is the sole reason for the layoffs.
