Intel Confirms More Layoffs in Its Data Center Unit
Intel continues layoffs in its data center unit amid its turnaround process.
1Layoffs in Intel's Data Center Unit
Intel announced it will cut an unspecified number of jobs in its data center unit. This decision is part of a broader restructuring process led by CEO Lip-Bu Tan.
2Shareholders' Reaction
Intel's shares rose as much as 8% in early trading following the layoff news. This increase extended the rally that has seen the company's stock double this year.
3Performance of the Data Center Unit
Intel's data center and AI division posted $5 billion in revenue last quarter, a 22% increase driven by rising demand for Xeon processors used in AI data centers.
4Purpose of the Restructuring
Intel stated that the layoffs in the data center unit aim to ensure the right roles and skills are in place for long-term success. However, the exact number of layoffs was not disclosed.
5Competition in the AI Market
While Intel plays a significant role in AI systems with its Xeon processors, it has failed to produce a competitive AI accelerator chip to rival Nvidia's GPUs, resulting in billions in lost revenue.
6Future Expectations
Intel's turnaround is supported by its 18A manufacturing process reaching high-volume production and partnerships with companies like Apple and Amazon. However, it remains to be seen if the market has already priced in these developments.
Original article: The Next Web — Intel veri merkezi biriminde daha fazla işten çıkarma yapıyor