US chipmaker Intel is planning layoffs within its data center group amid a larger effort to become a “more focused and efficient” company.
“As part of our broader strategy to become a more focused and efficient company, Intel’s data center group (DCG) is aligning its organization to ensure it has the right roles and skills in place to position the business for long-term success,” an Intel spokesperson told Business Insider on Tuesday.
The spokesperson added that Intel is committed to supporting affected employees through the transition. Intel declined to disclose how many employees would be impacted by the layoffs.
A person familiar with the matter told Business Insider that the changes would not affect the data center group’s product commitments and roadmaps and should help to better streamline the business.
News of the planned layoffs was first reported by The Oregonian.
The new round of job cuts comes as Intel has steadily reduced its workforce over recent years. Last year, Intel laid off at least 15% of its factory workers, or more than 5,000 employees, across four US states.
In August 2024, the chip manufacturer announced more than 15,000 job cuts as part of a plan to deliver $10 billion in cost savings for 2025.
Intel’s turnaround effort gains momentum
The latest planned layoffs come at a pivotal period for Intel, which has shown signs of renewed momentum under CEO Lip-Bu Tan.
Tan was appointed CEO in March 2025 and is attempting a turnaround. The chipmaker’s market share decreased in the last decade amid competition with foreign suppliers like Taiwan Semiconductor Manufacturing Company.
The US chipmaker is in the midst of developing its foundry business, an effort to develop chips for other companies.
On Tuesday, Intel announced its first named customer for its foundry business during Tan’s tenure, a partnership with California-based cybersecurity company Fortinet to develop its next-generation security chip. Intel shares were up more than 6% following the news.
Last year, the US government took a nearly 10% stake in Intel, making it the company’s largest shareholder. Intel’s stock soared after President Donald Trump discussed the agreement at the White House and have climbed roughly 179% since the start of the year.
Tesla CEO Elon Musk has also said that the EV maker plans to use Intel’s more advanced 14A chip process, which would mark a major win for the chipmaker.
Back in May, Intel’s stock rose to an all-time high following reports that the company was in talks with Apple to make chips for its devices.
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