Intel is preparing another round of layoffs, this time targeting its Data Center Group as the company continues a multi-year restructuring which has already led to a global workforce reduction by 40,000. While it is not clear how many jobs Intel plans to eliminate with the latest cuts, the chipmaker said they won’t affect its product commitments or roadmaps.
“As part of our broader strategy to become a more focused and efficient company, (the 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,” Intel said in a written statement to The Oregonian/OregonLive on Monday. The company said it expects the restructuring will enable it to 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.
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Intel added that “DCG is aligning its organization to ensure it has the right roles and skills in place to position the business for long-term success.” The company also said the changes are part of a “broader strategy to become a more focused and efficient company.”
According to media reports, Intel’s global headcount has declined from 125,000 employees at the end of 2023 to 85,000 by the end of 2025. The reduction represents a 40,000-employee decline over two years.
The latest workforce reductions could have a disproportionate impact on Oregon as Intel remains the state’s largest corporate employer. Workforce numbers in Oregon have steadily declined over the past two years.
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The layoffs come in spite of signs of improving momentum in parts of Intel’s business. According to the Portland Business Journal, the expansion of data centers worldwide is boosting demand for central processing units (CPUs), one of Intel’s core product categories.
The company has also made progress in chip packaging and manufacturing process technology, improving prospects for Intel Foundry, its contract chip manufacturing business. The workforce changes also coincide with stronger performance from Intel’s data center business.
Intel is scheduled to report its next quarterly financial results after U.S. markets close on Thursday.
Earlier this year, President Donald Trump said Apple will work with Intel to design and manufacture semiconductors within the United States. The president said the arrangement is part of a broader White House plan to revitalize American silicon manufacturing and decrease reliance on overseas factories.