[News] Intel Reportedly Plans Data Center and AI Group Layoffs Despite the Unit’s 22% 1Q26 Revenue Growth

Intel is reportedly planning another round of layoffs. According to The Oregonian/OregonLive, the company has informed employees in its Data Center and AI Group of fresh job cuts, following major workforce reductions in 2024 and 2025. Intel has not disclosed how many positions will be eliminated. KNews notes that the company may reveal the number of affected employees when it reports second-quarter earnings on Thursday.

The reported cuts are notable because they affect a business that posted strong revenue growth in the first quarter. As noted by Cailian Press, Intel’s Data Center and AI Group focuses on server CPUs, custom AI chips, and data center architectures. The division reported first-quarter 2026 revenue of US$5.05 billion, up 22% year over year.

Despite the layoffs, Intel said its product commitments and strategic roadmap remain unchanged. The Oregonian/OregonLive reports that the company is realigning its Data Center and AI Group as part of a broader effort to become a more focused and efficient organization, ensuring it has the right roles and skills in place for long-term success.

The latest layoff report also comes after months of improving sentiment around Intel. Portland Business Journal notes that the global expansion of data centers has been boosting demand for the company’s core CPU business, while advances in chip packaging and manufacturing have strengthened the outlook for Intel Foundry.

The latest reported cuts are part of a broader restructuring effort. The Oregonian/OregonLive adds that Intel’s global workforce has fallen by nearly 40% over the past four years, from nearly 132,000 employees in 2022 to around 81,000 today. The reduction reflects both business divestitures and tens of thousands of layoffs carried out worldwide over the past two years.

Beyond Intel, Samsung Electronics is also cutting jobs in the U.S. Reuters reports that Samsung Electronics has cut jobs across its U.S. display, smartphone, and other consumer electronics operations. Documents reviewed by Reuters show that 739 positions in Englewood Cliffs, New Jersey, are affected by Samsung Electronics America’s (SEA) headquarters relocation to Texas. SEA oversees the company’s consumer electronics business and does not include its semiconductor operations.

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(Photo credit: Intel)