Intel is laying off employees in its Data Center and AI Group (DCG) as part of an ongoing restructuring plan, the company confirmed. The job cuts come just days before Intel’s quarterly earnings report, when investors will scrutinize the chipmaker’s progress in streamlining operations and strengthening its foothold in the AI and semiconductor markets.
Intel has not disclosed the exact number of employees affected. In a statement, the company described the move as part of a broader strategy to build a more focused and efficient organization. “As part of our broader strategy to become a more focused and efficient company, Intel’s DCG 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. The company added that it will support affected employees through the transition.
Importantly, Intel emphasized that the restructuring will not affect its product roadmap or customer commitments. The DCG is a critical business unit, responsible for server processors and AI technologies for enterprise clients. The goal is to streamline operations without disrupting key projects.
The job cuts represent the latest cost-cutting measure under CEO Lip-Bu Tan, who has been leading a turnaround effort amid intense competition in the rapidly expanding AI chip market. Over the past two years, Intel has taken several steps to reduce costs, including previous layoffs, as it seeks to achieve sustainable growth and execute effectively.
Analysts will be watching Intel’s upcoming earnings report for more details on the restructuring and the company’s AI initiatives.