Intel Announces Further Layoffs! Data Center Division Becomes Latest Target, Workforce Shrinks by Nearly 40% in Four Years

Intel announced a new round of layoffs in its data center business division, continuing the momentum of large-scale streamlining over the past two years.

According to a report by The Oregonian on the 20th, Intel has notified employees in its data center business division of job cuts, though specific layoff numbers were not disclosed. In a statement, Intel said the restructuring is part of its overall strategy to "become a more focused and efficient company," aiming to ensure the business has the "right roles and skill sets" without affecting product commitments or technology roadmaps.

The news of the layoffs comes on the eve of Intel's upcoming second-quarter earnings release. In the first quarter of this year, data center business sales reached $5.1 billion, a 22% year-over-year increase. Meanwhile, Intel's stock price surged from around $23 a year ago to approximately $99 in early trading on Monday, as investors hold high expectations for the prospects of AI chip demand and the expansion of its foundry business.

Organizational Streamlining Continues Amid Business Improvement

Intel's latest layoffs occur at a time when the company's fundamentals are clearly improving. Investors expect that as AI systems take on more online tasks, market demand for Intel's microprocessors will continue to expand. At the same time, the market generally expects major tech companies like Apple to commission Intel for chip foundry services, bringing new growth to its manufacturing business.

Intel's stock price has risen more than 300% over the past year, briefly surpassing $142 last month before pulling back somewhat. However, the strong stock performance has not stopped management from continuing to push forward with organizational efficiency reforms.

CEO Lip-Bu Tan explicitly stated that Intel needs to reduce management layers to accelerate decision-making and speed up the deployment of new technologies.

Over 40,000 Employees Cut in Four Years

The layoffs in the data center division are a continuation of Intel's ongoing large-scale streamlining in recent years. Since 2022, Intel's global workforce has decreased from approximately 132,000 to about 81,000, a drop of nearly 40%.

Job reductions have been achieved through two paths: divesting certain business segments and directly eliminating tens of thousands of positions globally over the past two years.

In Oregon, Intel remains the largest corporate employer, but its local workforce has dropped from about 23,000 in 2024 to approximately 16,000 currently, representing a significant reduction.

Intel's continued layoffs have had a noticeable impact on Oregon's semiconductor industry. Employment in the state's chip sector is currently at a nearly 30-year low, and other tech companies in Oregon besides Intel have also experienced similar waves of layoffs.

A recent report commissioned by Business Oregon, the state's economic development agency, warned that if Oregon does not actively cultivate emerging enterprises and build a more robust talent supply system, the state's semiconductor industry could become "insignificant" on a global scale.