Intel Accelerates Efficiency Plan, New Layoffs in Data Center Division

Over a year since the launch of the restructuring plan promoted by CEO Lip-Bu Tan, Intel has announced a new wave of layoffs affecting the Data Center division, one of the segments that has shown the strongest results for the company in recent quarters. This decision is part of a broader cost-cutting and organizational simplification program that has already led to the elimination of over 35,000 jobs since 2024.

It appears that the results of the first quarter were not enough. The renewed role of CPUs in the AI ecosystem, following years dominated by GPUs and accelerators, has driven demand for Xeon processors, resulting in the Data Center and AI (DCAI) division recording revenues of $5.1 billion, an annual increase of 22%. Even the recent surge in stock prices has not deterred Lip-Bu Tan, who is continually seeking greater operational efficiency.

In a statement from a spokesperson, Intel explained the reasons behind the cuts: "As part of our broader strategy to become a more focused and efficient company, the Data Center Group is realigning its organization to ensure it has the right roles and skills to position the business for long-term success. We are committed to treating all affected employees with respect and providing them with the necessary resources to navigate this transition."

The company has not specified the number of employees affected nor the timing of the operation, stating only that the workforce reduction will not impact customer commitments or the roadmap for future products. Notably, a fresh production agreement with Fortinet has also been established.

The announcement of new layoffs thus highlights how the company's revival path continues alongside cost containment measures. Despite positive signals in commercial and financial fronts and a continuously expanding AI market, Intel believes it is necessary to continue rationalizing its organizational structure, even in one of the divisions that today contribute most significantly to the group's results.