# Intel Confirms More Layoffs in Its Data Center Unit Intel continues layoffs in its data center unit amid its turnaround process. - **Source:** [The Next Web](https://brifing.si/source/afe24b20-b275-4c19-b9a6-8bb3c8babae7) - **Published:** 2026-07-21 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/9a65c93d-b7f4-48dc-93af-275e610d1397 ## Layoffs 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. ## Shareholders' 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. ## Performance 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. ## Purpose 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. ## Competition 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. ## Future 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. ## Sources covering this story - https://thenextweb.com/news/intel-layoffs-data-center-group-stock-rally — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._