SAN JOSE, Calif. – Intel Corp. (INTC) plans to cut 1,000 management jobs worldwide in an effort to reduce costs and make its operations more efficient, the world's largest computer chip maker said Thursday.
Intel declined to say how much money would be saved or the cuts would result in a charge against earnings. The company planned to provide more detail Wednesday, when it releases its results for the second quarter, said spokesman Chuck Mulloy.
In April, the Santa Clara-based company reported a 38 percent drop in first-quarter profit as demand slackened for personal computers and competition from smaller rival Advanced Micro Devices Inc. (AMD) heated up.
Chief Executive Paul Otellini vowed to restructure the company in a move aimed at saving the company $1 billion a year.
Over the past five years, the percentage of managers hired at Intel has grown faster than that for the overall employee population, Mulloy said.
Intel shares rose 5 cents, or less than 1 percent, to $17.93, in early afternoon trading on the Nasdaq Stock Market.