SANTA CLARA, Calif. — Intel said it will make additional job cuts in its Data Center Group as part of a broader restructuring effort, sending its shares sharply higher as investors welcomed further cost-cutting measures ahead of the chipmaker's quarterly earnings report.
The company did not disclose how many positions would be eliminated but said the reorganization is intended to simplify operations and ensure the business has the "right roles and skills" to support long-term growth. Intel said the changes would not affect its product commitments or technology roadmaps.
"As part of our broader strategy to become a more focused and efficient company, DCG is aligning its organization to ensure it has the right roles and skills in place to position the business for long-term success," Intel said in a statement. The company added that it would provide support to affected employees during the transition.
Intel shares rose by more than 6% during Tuesday trading, extending gains that have lifted the stock significantly this year as investors have shown renewed confidence in Chief Executive Lip-Bu Tan's turnaround strategy. The restructuring announcement came days before Intel is scheduled to release second-quarter financial results on July 23.
The latest reductions follow several rounds of workforce cuts over the past two years as Intel seeks to reduce expenses and restore competitiveness in the semiconductor industry after years of market-share losses to rivals. Previous restructuring efforts included thousands of layoffs announced in 2024 as the company pursued substantial cost savings.
Since taking over in 2025, Tan has pursued a strategy focused on streamlining Intel's operations, strengthening its core chip businesses and expanding its contract manufacturing ambitions. The company recently announced new foundry business developments and partnerships as it works to rebuild confidence among customers and investors.
The Data Center Group remains a key business for Intel as demand for processors supporting artificial intelligence workloads and cloud computing continues to grow. Intel said the restructuring is designed to improve organizational efficiency rather than alter product development plans.
Intel is expected to provide additional details on its financial performance and strategic priorities when it reports second-quarter earnings after U.S. markets close on July 23, according to the company's previously announced schedule.
