Intel is to close two chip manufacturing plants and two test facilities by the end of the year, with up to 6,000 job losses expected.
The closures are part of plans to "align manufacturing capacity to current market conditions", the chip maker said.
Intel plans to close older US manufacturing plants at Hillsboro, Oregon and Santa Clara, California and test facilities in Malaysia and the Philippines.
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The closures would affect between 5,000 and 6,000 employees worldwide, but some employees may be offered positions at other Intel facilities, the company said.
Intel last week said it made a $234m profit for the last three months of 2008, a 90% drop on the same quarter last year.
Making the earnings announcement, Intel said it would cut production levels to avoid oversupply and halt production at older plants.
For the full year, sales were down 2% and profits fell 24%. The bad figures were widely expected as Intel had issued two previous profit warnings for the period.