Intel to start massive job cuts next week

Semiconductor giant Intel will announce the results of an internal review of its operations next week that will result in thousands of layoffs at the company, according to an InfoWorld Daily report.

The report quoted Intel CEO Paul Otellini in an email to employees as saying that he would reveal the results of the review in an internal Webcast, according to a New York Times article.

A spokesman for Intel in Santa Clara, California said the company was on track to announce a restructuring plan before the end of the third quarter

"But we are not announcing plans to do anything at this stage," Intel spokesman Chuck Mulloy said, calling the talk of layoffs "speculation."

Intel warned in April that its profits would fall sharply this year and said it would restructure the company to cut spending by more than $1 billion.

The company had battled this year with a slump in the growth rate of PC sales and from increased competition from Advanced Micro Devices, which had been increasing its share of the market, particularly in servers, the report said.