Intel planning Data Center Group job cuts

Intel’s new “data-driven” vision taking shape

According to reports that surfaced late last week, Intel is planning to lay off a substantial number of employees within its Data Center Group as part of a significant restructuring of the division.

SemiAccurate and Anandtech both reported Friday that between 25 and 33 percent of staff within the company’s data centre unit face losing their jobs, just days before the semiconductor giant is scheduled to report its fourth-quarter results to media and investors.

Data-driven

In December, Intel CEO Bob Swan revealed the company is expanding beyond the CPU market to focus on specialised chips for applications like AI and autonomous cars and other dedicated hardware for data-intensive workloads.

It is understood the Data Center Group realignment reflects Intel’s new strategic goals and that some employees within the division will be moving to new departments created to help the company get a foothold in these new markets, although at this stage it is unclear what proportion of employees will be staying or moving on.

An Intel spokesperson commented: “Changes in our workforce are determined by the needs and priorities of our business, which we continuously evaluate. We are committed to treating all affected employees with professionalism and respect.”

There have been two significant changes at the top of Intel’s data centre unit in recent weeks. In December, Navin Shenoy, EVP and GM of the Data Center Group, became EVP and GM of the Data Platforms Group, a newly-carved division which encompasses the Data Center Group.

It is unclear how many new groups Intel will create as part of its new strategic focus, although news of one new entity emerged with Lisa Spelman’s sidestep from Data Center Group VP and GM of Xeon Processors and Data Center Marketing to VP and general director of the new “Xeon and Memory (Optane) Group” (XMG). According to Daily Gaming World, XMG will focus on coordinating Xeon product lines and Optane storage options.

If 2019 was anything to go by, the new group has a lot on its plate as we enter the new decade. For several months Intel has been struggling to meet demand for 2nd generation Xeon server-class processors. This week, HPE warned the shortage could last through to April.

Commenting on the shortage, an Intel spokesperson told The Register: “We have invested record levels of CapEx the last two years to expand our capacity and increase our supply, but customer demand has outpaced these improvements.”

“We continue to prioritise the production of our highest performance processors as we also continue ramping volume on 10nm and working closely with customers to align our available supply to their demand,” they added.