Intel plans new job cuts after laying off 40,000 in the last two years

Intel is preparing another round of workforce reductions as the semiconductor giant continues its long-term restructuring aimed at improving efficiency and strengthening its competitive position. The latest layoffs will primarily affect the company's Data Center Group, although Intel has not disclosed how many employees will be impacted.

The company said the organizational changes are designed to ensure the business has the right talent and skills to support future growth while simplifying operations. Intel emphasized that the restructuring will not affect its existing product roadmap or customer commitments.

According to reports, Intel's global workforce has already fallen significantly over the past two years, declining from approximately 125,000 employees in 2023 to around 85,000 by the end of 2025. The latest cuts continue the company's broader effort to streamline operations amid an increasingly competitive semiconductor market.

The layoffs are expected to have a notable impact in Oregon, where Intel remains the state's largest private employer. Employee numbers in the region have steadily decreased as the company reshapes its global business strategy.

Despite the workforce reductions, Intel is seeing positive momentum in several key areas. Growing demand for data centers has increased the need for high-performance processors, while improvements in chip manufacturing and advanced packaging technologies have strengthened the outlook for Intel Foundry, the company's contract manufacturing division.

Intel said the restructuring is intended to create a faster, more focused organization capable of responding to changing market conditions while supporting long-term innovation. The company also stated that affected employees will receive assistance and support throughout the transition.

The latest announcement comes ahead of Intel's upcoming quarterly earnings report, where investors will closely watch the company's financial performance and future strategy. As the global semiconductor industry continues to evolve, Intel is balancing cost reductions with investments in advanced manufacturing and domestic chip production.