As part of its restructuring process, Intel plans to separate its networking and edge computing unit, the Network and Edge Group (NEX), from its current structure and transform it into an independent company. The company has begun discussions with strategic investors regarding this transition. NEX, which generated $5.8 billion in revenue in 2024, has been central to Intel’s long-standing operations in communications technologies such as Wi-Fi and Ethernet.

Intel is officially restructuring

This move is directly related to the company’s shift in focus to core processors and artificial intelligence solutions. The separation of NEX is considered part of Intel’s strategy to focus on areas that promise higher profitability.

With this move, the company is diversifying its investments in networking and edge solutions by sharing them with external partners. At the same time, by separating NEX from its core product strategy, it is planned to allocate more resources to artificial intelligence and processor technologies.

The restructuring process, led by Intel CEO Lip-Bu Tan, aims to reduce the company’s overhead and increase operational efficiency. Tan had previously announced that Intel had adopted a new management model that would reduce “unnecessary diversity” and require the company to approve all new projects. The structural separation of NEX stands out as one of the first major steps in this strategic shift.

The timing of the restructuring is noteworthy. Intel recently announced 24,000 layoffs and reported a $2.9 billion loss last quarter. These developments highlight the company’s need to narrow its overextended business segments and prioritize profitability. The independence of NEX aims to both reduce the company’s cost burden and attract external investment through new structures.