Intel is cutting jobs in its Data Center and AI Group (DCG) as part of its ongoing restructuring plan. The announcement comes ahead of the company's quarterly earnings, when investors are expected to closely examine its progress in improving operations and strengthening its position in the AI and semiconductor markets.
The company has not yet disclosed how many employees will be affected.
In a statement, Intel stated that the layoffs are part of a broader effort to build a more focused organisation.
“As part of our broader strategy to become a more focused and efficient company, Intel's DCG is aligning its organization to ensure it has the right roles and skills in place to position the business for long-term success.”
Intel added that it will support employees affected by the workforce reduction.
These changes will not impact the company’s product roadmap or customer commitments.
As per the statement issued by Intel, the aim behind these changes is to streamline the organization while making sure that no important project gets disrupted. The DCG will play an important role in Intel's business because it makes server processors and AI technologies for enterprises.
The job cuts mark the latest move by Intel under the leadership of its CEO, Lip-Bu Tan, as part of the restructuring process. The company has been looking to lower costs and reposition itself amidst the competition in the rapidly expanding AI chip market.
In the last two years, Intel has taken various steps to cut costs, including laying off workers, as it looks to execute effectively and achieve sustainable growth.
The company has emphasized that the restructuring aims to allocate resources towards long-term objectives and not slow down innovation.
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The move is being made just days ahead of Intel reporting their quarterly earnings. Analysts will be looking out for more information about the earnings and how Intel is handling their AI initiative and restructuring process.