Intel announces Data Center layoffs ahead of Q2 earnings

Intel confirmed on Tuesday, July 21, 2026, that it is conducting an unspecified number of layoffs within its Data Center and AI Group as part of a broader corporate restructuring. The announcement comes just two days before the chipmaker is scheduled to report its second-quarter earnings.

The company stated the move is intended to align the organization with long-term strategic goals, ensuring it has the right roles and skills to position the business for future success. An Intel spokesperson said the company is committed to treating impacted employees with respect and providing transition resources, adding that the layoffs are not expected to affect product commitments or roadmaps.

This latest round of job cuts occurs despite the data center division being a financial bright spot for Intel. In the first quarter, the unit reported revenue of approximately $5 billion, a year-over-year increase of 22 percent, driven by strong demand for its Xeon server processors used in artificial intelligence infrastructure. The juxtaposition of layoffs within a growing business unit underscores CEO Lip-Bu Tan's focus on operational efficiency and a leaner corporate structure as central to the...