Intel plans to lay off a modest number of employees as it reorganizes the company’s most vital business unit, its data center group, according to sources inside the company.

Intel hasn’t publicly announced any cuts and declined to comment on its plans. The company reports fourth-quarter results Thursday and is in a mandatory quiet period ahead of that announcement.

However, sources indicate the planned cuts do not appear to be widespread. Industry news sites SemiAccurate and AnandTech have each reported on the changes in the data center group and accompanying job cuts.

The layoffs appear to reflect a repositioning of the data center group, which is among Intel’s most profitable. The company has made a number of acquisitions – most recently last month’s $2 billion purchase of an Israeli artificial intelligence company called Habana Labs – to expand the capabilities of its data center technology.

In November, Intel reaffirmed forecasts of 3% sales growth in the fourth quarter. Investment analysts are generally upbeat on the company’s data center business, predicting a continued recovery after a decline at the start of the year.

Intel’s headquarters are in Silicon Valley but the company employs 20,000 in Washington County, the chipmaker’s largest and most advanced site anywhere.

Intel shares were trading Friday morning at $59.53, down 12 cents but near their highest point since the dot-com era.

-- Mike Rogoway | mrogoway@oregonian.com | twitter: @rogoway | 503-294-7699

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