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Intel Layoffs 2020: Targeted Data Center and Software Staff Cuts, Reports Say


Intel plans to lay off a modest number of employees as it reorganizes the company’s data center group, The Oregonian reports. An updated story mentions additional layoff plans across multiple business groups -- including Intel's software team.

Intel has not commented about the story, and is in a quiet period ahead of a quarterly earnings announcement scheduled for Thursday, January 23, the reports note.

Intel also made some job cuts in 2019, and CEO Bob Swan has brainstormed staff consolidation strategies since his time as CFO.

Related: Track all technology industry layoffs here.

Intel Business Evolution

The company over the past decade faced multiple challenges amid the shift from client-server computing toward mobile-cloud services. Some initiatives in the Internet of Things (IoT) and mobile markets underperformed, but there are also signs of progress at the company. The data center group has been a strong performer, and represented 32 percent of Intel's overall revenues in 2018, the company said in its annual report for that year.

Intel's overall business remains strong but lacks the growth engine of the go-go PC era. In its third quarter for 2019, revenue was a record $19.2 billion -- though top-line growth was essentially flat. Also, net income fell 6 percent to $6.0 billion for that 2019 third-quarter period. Rival AMD, meanwhile, has been a Wall Street darling in recent months. AMD's stock recently hit an all-time high amid -- though analysts also point out that the valuation is sky-high.

Intel Artificial Intelligence

Eager to reinvent itself beyond data centers, PCs and mobile devices, Intel has been acquiring AI businesses in a bid to lead the artificial intelligence revolution.

No doubt, CEO Swan will provide an update on Intel's AI progress during that January 24 earnings call.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.