Intel CEO Paul Otellini in an effort to increase efficiency and stem financial losses, is expected to cut up to 10,000 jobs next week, according to CNETNews.com.
The chipmaker, based in Santa Clara, Calif., began a 90-day internal review in April. Otellini will announce the results, and the layoffs, on Sept. 5, said sources knowledgeable about the plans.
Intel employs nearly 100,000 globally, making the layoffs as high as 10 percent of the workforce.
The cuts could be heavy in the marketing departments, where the ratio of marketing employees to sales personnel is seen as too large, the sources said.
Although Intel has reported figures of $885 million in net income and $8 billion in revenue for the second quarter, this is a 57 percent drop for the net income and a 13 percent drop in revenue compared to a year earlier.
This is partly due to Intel losing market share to rival Advanced Micro Devices (AMD), especially in the server market where chips are sold at higher prices.
AMD, who had to no server products three years ago, had 26 percent of the x86 server processor market in the second quarter, according to Mercury Research.