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Intel’s Data Center Group will face a significant number of redundancies in the event of a reorganisation. Reportedly, between 25 percent and 33 percent of the personnel involved could lose their jobs.

Intel did not provide any comment on the truth of the messages. However, the company will disclose the financial results for the fourth quarter of this Thursday. It may then clarify more about its plans. Intel has made a number of acquisitions in recent months, aimed at complementing its data center technology. These include the acquisition of Habana Labs, an Israeli AI company. In short, a complete overhaul seems to be taking place.

Corporate culture

The rumors about the Data Center Group surface some weeks after Intel Chief Executive Officer Bob Swan said the whole corporate culture needed to be overhauled. The company should move away from the traditional CPU market and instead focus on other, more data-intensive workloads, according to Swan.

In recent weeks, some of Intel’s top executives have provided more hints about the future of the Intel Data Center Group. At the end of last year, the head of the company’s data center division, Navin Shenoy, received the new title of executive vice president and general manager of the Data Platforms Group. He will be responsible for servers, storage, AI, the Internet of Things and field-programmable gate arrays, which are hardware accelerators for standard CPUs, among other things.