The night before the financial report, it was suddenly revealed that Intel Corporation (INTC.US) would cut staff, focusing on the hottest data center department to reduce costs and increase efficiency.

Chip giant Intel Corporation (INTC.US) has once again initiated a new round of cost optimization actions. On Monday, Intel Corporation officially informed its data center business division employees that the company plans to carry out a new round of layoffs in that department. This comes after experiencing massive layoffs in 2024 and 2025, once again swinging the "layoff axe." Regarding these layoffs, Intel Corporation officially stated: "As part of our broad strategic effort to become a more focused and efficient company, (the data center division) is adjusting its organizational structure to ensure it has the right roles and skills to establish a foundation for long-term success." The company stated that this restructuring is expected to simplify and expedite operations, and emphasized that the layoffs will not affect its commitment to products or established development roadmap. The statement also promised to respect all affected employees and provide them with the necessary resources and support through the transition period. Somewhat contradictory, the data center and artificial intelligence (AI) divisions that were affected by this round of layoffs are the main engines driving Intel Corporation's recent performance recovery. Financial data shows that in the first quarter of 2026, this division generated revenue of approximately $5.05 billion, a 22% increase compared to the previous year. Intel Corporation is scheduled to release its second-quarter earnings after the market closes on Thursday (July 23), and the market's expectations are currently quite optimistic. Analysts generally expect Intel Corporation's adjusted earnings per share to reach $0.22 and revenue to be $14.45 billion, marking a significant turnaround from last year's loss of $0.10 per share and revenue of $12.86 billion in the same period. Four-year downsizing of nearly 40%, significant reduction in management levels This round of layoffs is a continuation of Intel Corporation's long-term "downsizing plan." Current CEO Lee Chi-Woo proposed a global layoff plan of 15% after taking over from Pat Gelsinger in March 2025. As of now, over 5,000 employees have been laid off in the United States, mainly concentrated in California, Oregon, Arizona, and Texas, with the majority of layoffs completed in 2025. Looking at a longer timeframe, Intel Corporation's global workforce has shrunk from almost 132,000 in 2022 to approximately 81,000 today, a reduction of nearly 40% over four years. This includes both direct layoffs and personnel losses resulting from business divestitures. Lee Chi-Woo previously emphasized that Intel Corporation...