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As AMD increases server market share, Intel lets go of 129 Data Center employees, citing changed "priorities"

Intel laid off 129 of its Santa Clara Data Center Group staff members (Image source: Intel)
Intel laid off 129 of its Santa Clara Data Center Group staff members (Image source: Intel)
Intel laid off 129 employees from its Data Center Group, even after excellent Q4 2019 financial performance. Could AMD's server market presence have been a factor?
Arjun Krishna Lal,

Intel recently laid off 129 staff members at its offices in Santa Clara. The layoffs took place despite excellent performance in Q4 2019. The redundancies were apparently part of strategic realignment at Intel's Data Centre Group, now known as the Data Platform Group 

Speaking to the San Fransisco Chronicle, Nancy Sanchez, a spokes rep for Intel said the company was "planning to eliminate roles associated with projects that are no longer priorities." 

What makes these Data Center Group layoffs interesting is that they come at a time when AMD's been making significant headway in the enterprise server segment. With AMD's EPYC Rome and upcoming EPYC Milan architectures offering more cores and lower power consumption at a lower TCO, large companies such as Netflix are turning away from Intel's Xeon offerings. This resulted in a significant increase in AMD's enterprise server market share over the last 2 years, from effectively 0 to nearly 5 percent. 

The Santa Clara redundancies may not be a direct consequence of AMD's gains in the data center space. However, it was likely a significant factor behind Intel's data center "strategic realignment" overall. 

We are interested in how Intel plans to respond to AMD's gains in the server space. Leaked Ice Lake server scores indicate that Intel is already working on next-gen Ice Lake Xeon parts on the 10nm and beyond. Just when they'll arrive on the market remains to be seen, however. 

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2020 02 > As AMD increases server market share, Intel lets go of 129 Data Center employees, citing changed "priorities"
Arjun Krishna Lal, 2020-02-18 (Update: 2020-02-18)
Arjun Krishna Lal
Arjun Krishna Lal - News Editor
I've had a passion for PC gaming since 1996, when I watched my dad score frags in Quake as a 1 year-old. I've gone on to become a Penguin-published author and tech journalist. When I'm not traveling the world, gathering stories for my next book, you can find me tinkering with my PC.