Intel is gearing up to implement another round of price increases for its computer CPUs in early October, with a projected hike of 10%. Owing to the slim gross margins, its Small Core product line could potentially be discontinued as part of the strategic shifts following the appointment of the new CEO, Lip-Bu Tan. In the meantime, whispers in the industry indicate that Intel is poised to slash an additional 5% to 10% of its workforce.

Since the end of 2025, Intel CPUs have undergone several price surges, mainly driven by escalating supply chain costs and robust demand for specific products. Lip-Bu Tan is undertaking a thorough evaluation of the CPU business, zeroing in on pricing strategies, gross margins, product portfolios, and manufacturing expenses. Prior to this, he overhauled the management structure substantially and carried out layoffs in the data center and AI sectors in July.

Since 2022, Intel's global workforce has dwindled from roughly 132,000 to about 81,000 employees. Moreover, Intel ceased production of its 12th Gen Core Alder Lake-S products in January 2026. Industry experts posit that if Intel scales down its low-margin Small Core products, sectors such as industrial computers, the Internet of Things (IoT), and embedded markets will feel the impact. This could pave the way for Arm-based rivals like Qualcomm and MediaTek to make inroads into the relevant chip domains.