Intel to cut hundreds of data-centre jobs despite 22% revenue surge
Intel will eliminate hundreds of roles in its Data Center and AI Group, the company said on Wednesday, despite the unit posting a 22% year-on-year revenue jump to $5.05 billion in the first quarter.
Source: techstory.in · July 22, 2026 at 10:02 PM · AI-assisted report
Single-sourceKUALA LUMPUR, 23 JULY 2026 —
Intel will eliminate hundreds of roles in its Data Center and AI Group, the company said on Wednesday, despite the unit posting a 22% year-on-year revenue jump to $5.05 billion in the first quarter.
Market Impact
The cuts form part of CEO Lip-Bu Tan’s plan to trim global headcount by 15% company-wide as part of a broader efficiency drive. Intel said the move aligns “the organisation to ensure it has the right roles and skills” for long-term success. Hardware roadmaps for Xeon server processors and custom AI accelerators remain unchanged, company sources said.
First-quarter revenue for the data-centre division reached $5.05 billion, up from $4.14 billion a year earlier. The parent company’s share price rebounded from lows near $20 to trade above $100 during the period, reflecting renewed investor confidence after several years of foundry losses and market-share erosion.
Tan, who took over in early 2025, told analysts the overhaul would accelerate decision-making and improve operational agility as rivals such as Nvidia and AMD race to capture enterprise AI spending. The cuts target middle-management layers and organisational redundancies rather than product development teams.
The announcement follows similar workforce reductions at other large tech firms. Oracle cut about 21,000 jobs to deploy AI across internal operations, Cisco reduced roughly 4,000 roles to reallocate capital toward AI networking, and Meta continues operational cuts despite record advertising revenue. All cite a common rationale: maintaining lean operating models even during periods of strong financial growth.
Analysts say the trend marks a structural shift. High quarterly revenue no longer automatically translates into expanded headcount; instead, companies prioritise profit margins and reallocate resources to high-growth areas such as edge AI, robotics, and next-generation foundry nodes. Intel’s upcoming earnings report is expected to reinforce this message to investors.
Related: Intel