In a move believed to be targeted at improving decision-making processes, microprocessor giant Intel is planning to scrap 1,000 managers worldwide in a voluntary redundancy programme.
The company, which employs close to 5,000 people in Ireland, says only a small number of its Irish workforce will be impacted.
The decision to cut 1,000 managers jobs is understood to be the first action of the company’s restructuring programme announced in April. The company says the managers affected are from all Intel business divisions in all geographies.
A month ago Intel revealed plans to sell its loss-making XScale communications chip business to Marvell Technology Group for US$600m in order to allow it to focus on its PC chip business.
Intel has been hard hit by an ongoing PC industry slowdown as well as stiff competition, particularly from Advanced Micro (AMD).
The company’s stock has fallen 33pc in the past year, while AMD’s has continued to rise 17pc over the same period.
Intel, which employs 100,000 people worldwide, informed its employees of the cuts yesterday.
Spokesman Chuck Molloy has described the action as aimed at reducing costs and improving communications and decision making across the company.
By John Kennedy