Intel plans fresh layoffs after shrinking workforce by 40,000 in two years

Intel is preparing another round of layoffs, this time targeting its Data Center Group (DCG), as the semiconductor company continues a multi-year restructuring that has already reduced its global workforce by 40,000 employees over the past two years.

According to reporting by The Oregonian, employees in Intel's data centre division have been told to expect workforce reductions. The company has not disclosed how many roles will be affected, and it remains unclear what the latest cuts will mean for its operations in Oregon.

In a statement shared with media outlets, Intel said the move forms part of a broader plan to improve operational efficiency.

"DCG is aligning its organisation to ensure it has the right roles and skills in place to position the business for long-term success."

The company added that the changes are part of a "broader strategy to become a more focused and efficient company."

Restructuring continues across the business

The latest announcement extends a restructuring programme that has significantly reshaped Intel's workforce. According to the company's annual reports:

• Global headcount declined from 125,000 employees at the end of 2023 to 85,000 by the end of 2025.
• The reduction represents a 40,000-employee decline over two years.

Intel has undertaken several rounds of layoffs during the period as it sought to lower costs and reorganise key business units.

Oregon remains central to Intel's operations

The latest workforce reduction could have implications for Oregon, where Intel remains the state's largest corporate employer.

Workforce numbers in Oregon have steadily declined over the past two years. Key figures include:

• The Oregon workforce peaked at 23,000 employees at the beginning of 2024.
• Headcount fell to around 20,200 a year later.
• Intel subsequently announced 3,200 layoffs in 2025.
• Company representatives have declined to disclose the current number of employees in the state. However, local reporting noted that even with 17,000 employees, Intel would remain Oregon's largest corporate employer.

Layoffs come as business outlook improves

The planned workforce reductions come despite signs of improving momentum in parts of Intel's business.

According to the Portland Business Journal, the expansion of data centres worldwide is boosting demand for central processing units (CPUs), one of Intel's core product categories. The company has also made progress in chip packaging and manufacturing process technology, improving prospects for Intel Foundry, its contract chip manufacturing business.

Intel's share price has also recovered sharply over the past year. After trading in the low $20 range a year ago, the stock climbed to around $140 last month before pulling back alongside broader weakness in semiconductor shares. During Monday trading, the stock was up around 3% to $98.43 by late morning Pacific time, according to the report.

Data centre business gains pace

The workforce changes also coincide with stronger performance from Intel's data centre business. For the first quarter:

• Data Center and AI generated $5.5 billion in revenue.
• The company's PC processor business remained larger, reporting $7.7 billion in revenue.
• Data centre revenue increased 22% year on year.
• PC processor revenue grew 1% over the same period.

Intel is scheduled to report its next quarterly financial results after US markets close on Thursday, when investors are expected to seek further clarity on the company's restructuring plans, workforce strategy and progress in its data centre and foundry businesses.