The chip giant has been in the midst of a thorough, 90-day review ordered by CEO Paul Otellini back in April designed to wring a billion dollars in savings.
Internetnews.com obtained a copy of the memo Otellini sent to Intel employees today, which said in part:
"You should expect that we will continue to take actions, including selective reductions, as we complete analyses and decisions about investments, expense levels and organizational structures."
He also tried to buck up the troops with a reminder that Intel will remain "the largest and most profitable semiconductor company on earth," at the end of the reorg process.
And that the actions the company is taking are designed to ensure that remains true well into the future.
Otellini called the layoff announcement "an essential first step toward making us more competitive."
Other actions are likely, but this first cut was a direct result of the analysis that left Intel (Quote, Chart) with the conclusion "we have too many management layers," company spokesman Bill Calder told internetnews.com.
"We've benchmarked ourselves against the rest of the industry and we're addressing ways we can be more efficient."