Intel reported quarterly revenue jumping to $16.1 billion, marking its fastest growth in over 15 years with a 25% increase year-over-year. The standout was its Data Center and AI segment, which soared 59% to $6.3 billion. Yet, this booming division also faces fresh layoffs announced just days after the results.
Growth Amid Job Cuts
The surge in AI-driven computing power is fueling Intel's expansion, according to CFO Dave Zinsner, who highlighted increased investments in equipment, clean room capacity, and substrates to keep pace with demand. Despite this, Intel is cutting jobs in the very departments driving growth. The company posted only $170 million in restructuring charges for the quarter but forecasts a striking $4.3 billion in restructuring costs for the full year, suggesting more reductions ahead.
Last July’s round of layoffs slashed about 15% of Intel’s workforce, including halving managerial roles. The Oregonian reported that over 7,000 jobs vanished at Intel’s largest US site in Oregon within two years, leaving around 16,000 employees there. Across the globe, Intel’s headcount has shrunk roughly 40% over four years, positioning job cuts as a regular fixture despite solid sales figures.
This tension between expansion and contraction echoes broader industry trends where AI investment drives growth but leads to workforce reshaping. Intel’s data center segment remains critical for future growth, even as the company balances cost-cutting with rising operational expenses.
All information is for awareness, not financial advice.
