Intel lays off more staff! Data center division is the latest target, workforce shrinks by nearly 40% in four years.

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

According to a report by The Oregonian on the 20th, Intel has notified employees in its data center business unit, confirming job cuts in the department but did not disclose the specific number of layoffs. Intel stated that this restructuring is part of the company’s overall strategy to "become a more focused and efficient enterprise," aiming to ensure the business has the "right positions and skills configuration," and will not affect product commitments or the technology roadmap.

This layoff news comes on the eve of Intel’s second-quarter financial report. In the first quarter of this year, data center business sales reached $5.1 billion, up 22% year-over-year. Meanwhile, Intel’s stock price has soared from around $23 a year ago to about $99 in early trading on Monday. Investors hold high expectations for the demand prospects of its AI chips and growth in its foundry business.

Continuing Downsizing Amid Business Improvement

This round of Intel layoffs comes at a time when the company’s fundamentals are clearly improving. Investors expect that as AI systems handle more online tasks, the market demand for Intel’s microprocessors will continue to expand. At the same time, the market widely anticipates that big tech companies such as Apple will contract Intel to manufacture chips, bringing new incremental business to its manufacturing segment.

Intel’s stock price increased by more than 300% in the past year, at one point briefly exceeding $142 last month, though it has since pulled back. However, the strong performance of its stock price has not stopped management from pushing forward organizational efficiency reforms.

CEO Pat Gelsinger made it clear that Intel needs to reduce management layers to accelerate decision-making and promote faster implementation of new technologies.

Over 40,000 Jobs Cut in Four Years

The data center department layoffs are a continuation of Intel’s large-scale downsizing in recent years.Since 2022, Intel’s global workforce has dropped from about 132,000 to about 81,000 currently, a decrease of nearly 40%.

This reduction has been achieved through two paths: first, by divesting some business divisions; second, by 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 reduced significantly, dropping from about 23,000 in 2024 to about 16,000 currently.

Intel’s continued layoffs have had a marked impact on Oregon’s semiconductor industry. Employment in the state’s chip sector is now at its lowest point in nearly 30 years, and other Oregon tech companies besides Intel have also experienced similar waves of layoffs.

A recent report commissioned by Oregon’s economic development agency, Business Oregon, warns that if Oregon does not actively cultivate new enterprises and build a more complete talent supply system, the state’s semiconductor industry may become "insignificant" on a global scale.

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