[News] Intel Reportedly to Cut 103 Jobs in Mid-August After DCAI Layoff News Emerges
Intel confirmed last week that it would launch a new round of layoffs in its Data Center and AI Group, though the company has yet to disclose the scale. New details have since surfaced, though Intel has not confirmed a direct link between the two. According to the Francisco Chronicle, Intel plans to cut 103 positions across four Bay Area offices next month, marking the latest workforce reduction at the Santa Clara-based chipmaker.
The permanent layoffs, which will reportedly take effect Aug. 15, is expected to primarily impact Intel’s Santa Clara facilities, according to filings submitted to California authorities cited by the report.
The Francisco Chronicle report adds that the largest reduction will come at the company’s SC-12 facility on Juliette Lane, where 67 employees will be affected, followed by 24 cuts at the Robert Noyce Building headquarters, 10 at another Juliette Lane office, and two at its Laurelwood Road location.
The latest workforce reduction comes even as Intel’s data center business shows signs of recovery, driven by strong demand for server CPUs. According to Wccftech, citing Intel’s latest SEC filing, the company’s server CPU average selling prices (ASPs) surged 48% in the second quarter, fueled by a higher mix of premium products. Meanwhile, its Data Center and AI business recorded a 59% YoY revenue increase, generating US$6.3 billion in quarterly sales.
According to The Oregonian/OregonLive, the company’s global workforce has contracted by nearly 40% since 2022, falling from approximately 132,000 employees to around 81,000 today. The decline reflects both portfolio changes, including business divestitures, and large-scale workforce reductions across global operations, the report says.
Intel’s DCAI Reset
Intel’s data center business has been in flux for over a year, well before this month’s layoff news. As Data Center Knowledge reported, CEO Lip-Bu Tan reshuffled his leadership bench back in September 2025, tapping former Arm executive Kevork Kechichian to run the newly reconstituted Data Center Group.
According to Data Center Frontier, Intel’s Data Center and AI Group was split into two separate organizations, with the Data Center Group focusing on CPUs and the AI Group overseeing AI accelerators and related products.
More significantly, the Data Center Group report directly to CEO Lip-Bu Tan, removing an additional layer of management introduced when Intel veteran Michelle Johnston Holthaus was appointed CEO of Intel Products, the report noted.
Read more
- [News] Intel’s CPU Momentum Builds: 10 Long-Term Deals Reportedly Lock In Demand; Intel 3 Capacity Tightens
- [News] Intel Reportedly Plans Data Center and AI Group Layoffs Despite the Unit’s 22% 1Q26 Revenue Growth
(Photo credit: Intel)
