Intel is laying off workers in its data center division despite strong recent performance

Intel's data center business has seen tremendous growth thanks to ongoing AI demands
Layoffs would likely target operational efficiency over division reduction
Share prices and quarterly earnings are back to being in a good place

Intel has reportedly warned workers in its Data Center Group that another round of layoffs could be coming soon, adding to the major layoffs that already came in 2024 and 2025.

The company has not disclosed the number of jobs being eliminated, when they would leave, or any other finer details, but Oregon Live reports that the restructuring would reduce organizational complexity and allow the division to operate more quickly.

However, the changes still come as a surprise, with the Data Center Group currently one of Intel's stronger-performing businesses.

Intel set to lay off data center business workers

More broadly, warnings of sector layoffs come as more of a shock with data center hardware in hot demand and supply chains under immense pressure.

"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," the company told Oregon Live.

New CEO Lip-Bu Tan had already warned of major workforce restructuring in a drive for organizational efficiency.

This comes against a healthy backdrop for Intel, with first-quarter revenue for the data center division up 22% year-over-year. In fact, Intel's company share price has recovered dramatically in recent months following support from the US government. From lows of under $20 throughout parts of 2025, company shares have since grown around 5x to $105.45 at the time of writing.

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That growth is set to continue, with Intel set to announce its second-quarter results on July 23 2026, targeting revenue of $13.8 billion to $14.8 billion, up from $13.6 billion in its first quarter.

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