Intel (INTC, Financials) said the U.S. chipmaker that creates processors, data center devices and artificial intelligence technology has started a fresh round of layoffs that would be concentrated on its Data Center and AI department.
The corporation did not specify the number of employees affected. Intel claimed the adjustments were meant to increase productivity, and would not modify product commitments or development roadmaps.
The unit makes server CPUs, custom AI chips and data center architecture. First-quarter revenue jumped 22% from a year earlier to $5.05 billion.
The layoffs are part of Chief Executive Lip-Bu Tan's broader efforts to make Intel a more lean company. Tan said after taking over in March 2025 that he planned to reduce global manpower by 15%.
More than 5,000 U.S. workers have already been laid off, mostly in California, Oregon, Arizona and Texas.
Intel's shares have soared over 300% in the past year, creating optimism for a sustainable recovery, the cuts come as.
Intel is due to release second-quarter data after the market closes July 23. Analysts expect earnings, on an adjusted basis, of 22 cents a share on revenue of $14.45 billion.