Intel is preparing another round of job cuts within its Data Center and AI organization as CEO Lip-Bu Tan continues reshaping the chipmaker around fewer management layers, faster decisions and a sharper focus on core engineering priorities.
TL;DR
- Intel will reduce roles in its Data Center and AI organization, although the number and timing remain undisclosed.
- The company says its product commitments and development roadmaps will not change.
- Intel’s data center business is growing, with first-quarter 2026 revenue rising 22% year over year to $5.1 billion.
- Reports differ on how many jobs Intel has eliminated across its broader restructuring.
Intel’s Data Center And AI Group Faces Fresh Cuts
According to Cybernews, Intel has begun another workforce reduction affecting the organization responsible for server CPUs, custom AI chips and data center architecture. The report said the cuts are part of Lip-Bu Tan’s continuing effort to make Intel more focused and efficient.
Tom’s Hardware cited an Intel statement saying the data center group is aligning its organization to ensure it has the right roles and skills for long-term success. Intel added that the changes are intended to help the business operate 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 has not disclosed how many employees will be affected or when the cuts will be completed. Tom’s Hardware reported that the company said the reduction would not affect its business commitments or planned product launches, while Cybernews said Intel remains committed to its product roadmap.
That wording matters. Intel has not issued a blanket guarantee covering every manufacturing or production activity, but it has said its product commitments and roadmaps remain intact.
Cuts Come Despite Strong Data Center Growth
The restructuring arrives while Intel’s Data Center and AI business is reporting stronger demand. Intel’s official first-quarter 2026 results showed that the unit generated $5.1 billion in revenue, up 22% from the same quarter a year earlier.
Intel CEO Lip-Bu Tan said the shift from foundational AI models toward inference and agentic AI is increasing demand for Intel CPUs, wafers and advanced packaging.
“This deliberate reset to how we operate drove a sixth consecutive quarter of revenue above our expectations,” Tan said when the company released its first-quarter results.
Intel reported total first-quarter 2026 revenue of $13.6 billion, up 7% year over year. However, the company also recorded $4.07 billion in restructuring and other charges during the quarter, showing the scale and cost of its ongoing overhaul.
How Many Jobs Has Intel Cut?
The supplied Firstpost report framed the latest action as another layoff round after Intel had already cut about 40,000 jobs. Another report similarly described a steep multiyear workforce decline, but the exact comparison varies depending on the period used and whether divested businesses are included.
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Intel’s official figures show total headcount declined from 102,600 in March 2025 to 83,200 in March 2026. The company noted that around 3,000 Altera employees were excluded after Intel sold a controlling stake, meaning not every reduction represents a direct layoff.
For now, the verified takeaway is that another Intel unit is being reorganized, the number of affected workers remains unknown and the company says its data center product plans remain on course.
