Intel announced a new wave of layoffs centered on its Data Center Group, continuing a multi-year corporate restructuring program reported on July 20-21, 2026 [1, 2, 3, 4, 5, 6, 7]. The cuts come as Intel aims to realign its Data Center Group to secure the right roles and skillsets for long-term success, according to an Intel spokesperson who emphasized commitment to supporting affected employees during the transition [8].

Over the past two years, Intel has cut nearly 40,000 jobs worldwide, reducing its headcount from approximately 125,000 at the end of 2023 to about 85,000 by the end of 2025 [1, 2, 3, 4, 9]. The company’s workforce in Oregon, the largest private employer in the state, peaked at 23,000 employees in early 2024 before dropping to around 20,200 a year later, then further reduced by 3,200 in 2025 [1, 2, 3, 4]. The latest round of layoffs will affect this key operational hub [1, 2, 3, 4].

Chen Liwu (Rohit Chen) took over as Intel CEO in March 2025, leading transformations that include workforce reductions and a renewed focus on efficiency and growth areas such as its foundry business [9]. Intel’s Data Center and AI Group reported $5.05 billion in revenue for the first quarter of 2026, up 22% year-over-year, signaling strong demand despite the cuts [9]. Intel also stated the layoffs will not impact product commitments or development roadmaps for the Data Center Group [1, 2, 3, 4, 5, 8, 7].

Intel’s stock price jumped about 8.6% to $105.45 after the layoff news, continuing a strong rally that has seen shares rise 186% year-to-date [5, 6].

The broader tech sector has experienced significant job cuts in 2026, with about 165,000 layoffs at companies including Oracle, Meta, Microsoft, and Samsung [1, 2, 3, 4]. Oracle alone cut 21,000 jobs in the past year due in part to AI adoption [1, 2, 3, 4]. Meanwhile, June 2026 saw layoffs of roughly 14,000 workers at firms like Lucid, Bungie, and Robinhood, along with 4,800 Xbox gaming staff let go by Microsoft [1, 2, 3, 4].

Intel previously announced over 15,000 job cuts in August 2024 as part of a $10 billion cost savings target for 2025 [8]. The company is now maintaining focus on transforming into a more focused and efficient business to better serve customers like Fortinet through its foundry and chip development operations [5, 9, 8].