Intel Cuts Jobs in Data Center Group Amid AI Infrastructure Growth

Intel, under the leadership of Lip-Bu Tan, is preparing a new wave of job cuts within its Data Center Group, following previous restructurations, the last of which occurred in July 2025, according to The Oregon. The American chipmaker continues its transformation program with the goal of simplifying its organization and improving operational efficiency. In a statement to the American newspaper, Intel said it was adjusting the data center group's organization to have the right roles and skills for long-term success. The group did not disclose the number of positions affected, but clarified that these adjustments should not affect its product roadmap or customer commitments. The job cuts come at a time when the AI infrastructure market is experiencing strong growth, with data centers representing a major growth driver for the semiconductor industry, driven by demand for computing power, server processors, and AI-focused solutions. Intel's decision may seem surprising since this division is strategic, and its Xeon processors, aimed at professional servers and cloud infrastructures, have seen renewed interest. Several American media report that this activity saw revenue growth of 22% in the first quarter of 2026, highlighting the contrast between the commercial momentum and the announced job cuts. No details on the scale or timeline of the cuts have been provided.