Intel is cutting more jobs in its Data Center and AI Group, the latest round in what has become a years-long exercise in corporate downsizing. The layoffs are framed as part of a broader restructuring push to boost efficiency, though the company hasn’t disclosed how many positions are on the chopping block.
Here’s what makes this interesting: Intel’s data center unit isn’t struggling. It posted $5.1 billion in revenue during Q1 2026, up 22% year-over-year. The cuts aren’t about a dying business line. They’re about making a profitable one leaner.
The shrinking giant
Intel’s workforce has undergone a dramatic transformation over the past few years. The company employed roughly 132,000 people in 2022. That number now sits around 81,000, a reduction of approximately 40%.
CEO Lip-Bu Tan has been the driving force behind this organizational diet. His philosophy centers on flattening management hierarchies to speed up decision-making and innovation. Fewer layers of middle management, faster execution.
