Intel layoffs: After cutting 40,000 jobs, chip giant prepares another round of layoffs

Intel is set to reduce headcount once again, with employees in its Data Center Group (DCG) being informed that the division will undergo another round of layoffs as the US chipmaker continues an extensive restructuring aimed at reshaping its business.

The development, first reported by The Oregonian, comes after two years of sustained cost-cutting and organisational changes that have significantly altered Intel's workforce. While the company has confirmed the latest restructuring effort, it has not revealed how many jobs will be eliminated or whether the reductions will have a major impact on its sizeable operations in Oregon.

In a statement shared with media organisations, Intel said the changes are designed to better position the business for the future. "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 said.

Intel also described the move as part of a wider effort to sharpen its organisational focus and improve efficiency as it navigates an increasingly competitive semiconductor market.

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The latest cuts add to a prolonged restructuring programme that has steadily reduced the company's workforce across multiple business units. According to Intel's annual reports, the company's global employee count dropped from approximately 125,000 at the close of 2023 to around 85,000 by the end of 2025. That represents a reduction of roughly 40,000 employees over two years, reflecting one of the most significant workforce overhauls in the company's recent history.

The restructuring has unfolded through several rounds of layoffs as Intel has sought to lower operating costs, simplify its organisational structure and refocus resources on priority areas. The Data Center Group, which develops processors and technologies for enterprise servers and cloud infrastructure, is now the latest business unit to be affected.

The workforce changes could be particularly significant for Oregon, where Intel has long maintained one of its largest manufacturing and research footprints. The company remains the state's biggest private employer despite a steady decline in local staffing levels.

Employment in Oregon reached roughly 23,000 workers at the beginning of 2024 before falling to about 20,200 a year later. Intel subsequently announced another 3,200 job cuts in the state during 2025, further reducing its local workforce. The company has since declined to disclose its current employee count in Oregon.

According to The Oregonian, Intel would still retain its position as Oregon's largest corporate employer even if its workforce in the state has fallen to around 17,000 employees.

The latest restructuring reflects Intel's continued efforts to reshape its business at a time when the semiconductor industry is undergoing rapid technological and competitive change. Although the company has not provided a timeline for the new layoffs or identified the teams most affected within the Data Center Group, the announcement signals that its workforce transformation remains far from complete as it pursues long-term operational and financial goals.