SANTA CLARA, Calif. — Intel is cutting jobs in its Data Center and AI Group as part of a broader restructuring effort aimed at making the chipmaker more focused and efficient, the company said, extending a multiyear cost-cutting drive across the semiconductor industry.
Intel did not disclose the number of positions affected by the latest reductions, but said the changes were intended to align the organization with its long-term business priorities. The company said the restructuring would not affect product commitments or development roadmaps.
“As part of our broader strategy to become a more focused and efficient company, our Data Center Group 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 written statement. The company added that it was committed to supporting employees affected by the transition.
The job cuts come as Intel continues a sweeping turnaround effort under Chief Executive Lip-Bu Tan, who has focused on reducing costs, simplifying operations and improving the company’s competitive position in the semiconductor market. Intel previously announced major workforce reductions as part of restructuring plans designed to lower expenses and redirect resources toward core businesses.
In regulatory filings, Intel said its restructuring initiatives included workforce reductions, organizational changes and efforts to streamline operations. The company reported that headcount reductions under its restructuring plans contributed to lower payroll-related expenses.
The latest cuts highlight continuing pressure on chipmakers to adjust operations as the industry undergoes major shifts driven by artificial intelligence demand, rising competition and changing investment priorities. Companies across the technology sector have pursued layoffs and restructuring measures as they seek to control costs while investing in new computing technologies.
Intel has faced heightened competition in areas including artificial intelligence processors and advanced manufacturing, with rivals gaining market share in several high-growth segments. The company has sought to strengthen its foundry business and prioritize areas it views as strategically important.
The restructuring follows earlier workforce reductions and cost-saving measures that Intel said were part of a broader transformation program. The company’s latest changes are expected to proceed as it prepares to provide further updates on its business performance and strategy during upcoming earnings reporting.
