Intel has begun laying off thousands of employees in the US and Israel as part of a major AI restructuring push. CEO Lip-Bu Tan admitted the company can no longer compete in high-end AI hardware and will now focus on local and edge AI.

SANTA CLARA — Intel has decided to slash well over 700 Bay Area jobs in July as the longtime chipmaker embarks on a restructuring it hopes will create a more nimble company.

Intel plans to lay off over 5,500 employees across the US, with teams in California and Oregon set to see the most job cuts. This decision comes as Intel lags in the CPU and AI GPU markets, and effects can be seen in the company's market value.