Spokesperson Chuck Mulloy confirmed that the company had informed employees Thursday morning that 1,000 managers would be let go as the first action of the company's previously disclosed restructuring initiative. The affected managers are from across all Intel business divisions in all geographies, Mulloy said.

Mulloy said the company is not disclosing the anticipated cost savings of the manager layoff at this time. Intel will provide an update on its restructuring initiative later in the third quarter, Mulloy said. "This afternoon, microprocessor leader Intel distributed an internal memorandum to its employee base stating that it would be reducing the number of managers by roughly 1,000 over the next few days as part of its 90-day strategic review announced in April," said Tim Luke, an analyst from Lehman Brothers, in a report.

But the question is what's next for the chip giant? Intel is also expected to disclose more details of its restructuring plans, including a move to cut 10,000 to 15,000 jobs, according to another analyst.

"We have learned that Intel may be calling a press conference later today to announce the results of the company's 'top to bottom' review," said Doug Freedman, an analyst with American Technology Research Inc., in a report. "We believe investors are looking for workforce reductions in the range of 10,000 to 15,000, as the company streamlines research and development with a PC-centric focus."

Mulloy called Freedman's report pure speculation. "There is no news conference," he said.

By: DocMemory
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