Intel is to cut around 1,000 manager posts worldwide in an attempt to become more competitive in the market. Other staff positions are set to be announced next week.
Intel chief executive officer Paul Otellini told staff in a memo, "This step is important because it addresses a key problem we've found in our efficiency analysis: slow and ineffective decision-making, resulting, in part, from too many management layers."
Job cuts at Intel have been in the offing at the company for some time as the leading chip processor attempts to tackle the increasing challenge from its main competitor AMD head-on.
The 1,000 manager jobs will go immediately, and the company is expected to reveal further restructuring plans next Wednesday (19 July).
This is the day Intel publishes its latest quarterly financial results. Previous financial statements have included admissions by Intel that AMD is taking away market share from the company in most market segments.
Otellini said in his memo, "You should expect that we will continue to take actions, including selective reductions, as we complete analyses and decisions about investments, expense levels and organisational structures."
On the management situation, Otellini added, "Over the last five years at Intel, the number of managers has grown faster than our overall employee population. Our efficiency analysis and industry benchmarking have shown that we have too many management layers, top to bottom, to be effective."
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