Intel plans layoffs in data center unit ahead of expected Q2 report
Investors are watching planned cuts in Intel’s Data Center and AI Group alongside forecasts for $14.4 billion in second-quarter revenue and adjusted EPS of $0.22.
Fact Check
Multiple sources, including a primary news source (Benzinga), confirm Intel is launching fresh layoffs in its Data Center and AI Group ahead of Q2 earnings under CEO Lip-Bu Tan's turnaround strategy. The financial forecasts in the claim align closely with source data: adjusted EPS of $0.22 (exact match with Benzinga) and revenue near $14.4 billion (Benzinga cites $14.45 billion; Instagram/BI cites $14.4 billion). All four sources corroborate the layoff plans.
Summary
Intel is planning additional layoffs in its Data Center and AI Group as part of a broader restructuring and efficiency drive, even though the unit generated $5.1 billion in first-quarter 2026 revenue, up 22% year over year. The cuts come ahead of Intel’s expected second-quarter results, with FactSet-polled analysts forecasting revenue of $14.4 billion and adjusted earnings per share of $0.22. Investors are also looking for management commentary on the layoffs and on a potential new customer relationship with Apple, which has not been confirmed.
Terms & Concepts
- Data Center and AI Group: Intel business unit focused on server chips and products tied to enterprise, cloud and AI infrastructure demand
- adjusted EPS: Earnings per share excluding certain items
- restructuring: A corporate reorganization aimed at changing operations, costs or management structure to improve performance