Intel spins off Network and Edge computing groups in latest major company change

• Intel is looking for buyers of its Networking and Edge Group
• These areas accounted for 11% of Intel’s total 2024 revenue
• The move comes as Intel layoffs continue to hit its workforce

Intel is planning to spin off its engine Networking and Edge Group as part of an ongoing company-wide effort to boost profitability.

The news was confirmed in an internal memo seen by CRN, authored by Sachin Katti, who has held a number of roles in Intel’s Networking and Edge Group (NEX), including SVP, GM and CTO.

Although NEX will be spun off, Intel is set to remain a key investor, similar to its previous approach with Altera. That is, of course, if Intel is successful in finding a buyer.

Intel will spin off its Networking and Edge Group

An Intel spokesperson confirmed (via CRN): “We plan to establish key elements of our Networking and Communications business as a stand-alone company… Like Altera, we will remain an anchor investor enabling us to benefit from future upside as we position the business for future growth.”

However, the company remains in the early stages of identifying potential investors.

In 2024, NEX generated around $5.8 billion in revenue for Intel, around 11% of the company’s $53.1 billion in total annual revenue.

The move is the latets drastic action undertaking under the direction of new Intel CEO Lip-Bu Tan, who promised big changes when he came on board earlier in 2025.

“Intel was once widely seen as the world’s most innovative company. There’s no reason we can’t get back there, so long as we drive the changes needed to improve,” Tan shared with colleagues in April 2025.

Although most of the changes highlighted in Tan’s memo to workers centered around humans – redundancies, a return-to-office and streamlined processes with fewer unnecessary meetings – the CEO has also been making changes to the company itself.

Nevertheless, with this news coming just days after we learned that Intel would be reducing its headcount even further, it marks a major milestone in Intel’s history and one that workers will be paying close attention to.

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