Intel shares rally amid confirmed layoffs and data centre shake up

The organisation has let go of thousands of people since 2024, in an effort to cut costs.

Shares at Intel have rallied since the company announced it would be cutting additional jobs to further reduce costs and make changes to its key data centre unit. On Tuesday (21 July), it was reported that an unspecified number of roles at the data centre group (DCG) are expected to be affected.

Reportedly, Intel has reduced its headcount by more than 35,000 employees since 2024, with major cuts announced in both 2024 and 2025. Since the most recent announcement, it has been reported by Bloomberg that Intel’s stock has risen by 8.6pc in a prolonged rally in which the company’s stock has more than doubled this year. 

In a statement, which was first shared with The Oregonian, a representative for Intel said: “As part of our broader strategy to become a more focused and efficient company, (the data centre group) is aligning its organisation to ensure it has the right roles and skills in place to position the business for long-term success.

“We are committed to treating all impacted employees with respect and providing resources to support them through this transition.”

It was also reported that Intel have stated the layoffs will not impact business commitments or product roadmaps.

The company is currently racing to meet the demand for processors used in AI data centre. However, it has failed to facilitate the type of accelerator chip that is necessary in the creation of AI-powered software, resulting in a landscape in which its rivals are pulling ahead according to Bloomberg.

Last week (13 July), the organisation announced a major investment in its Kildare, Ireland facility, in which Intel intends to spend €5bn on the Leixlip campus. 

The investment will enable Intel to build its Xeon 6 semiconductor chips, bolster Europe’s tech sovereignty, protect European manufacturing from geopolitical risk and ensure advanced manufacturing capacity in Ireland. The funding is also expected to create employment for specialised tradespeople across construction and equipment installation.

Commenting at the time, Naga Chandrasekaran, the executive vice-president, CTO and general manager of Intel Foundry, explained that the investment will increase the output of critical products such as Xeon 6 and next-gen Intel Xeon processors built on Intel 3.

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