Intel could cut 10 per cent of workforce next week

Reports from inside Intel suggest that next week the chip giant will start savage job cuts in an effort to reducer costs.

The chip giant saw its last quarter's profits fall by over 50 per cent and chief executive Paul Otellini has already made over a 1,000 managers redundant in July but is thought to be under increasing pressure to cut costs still further.

Early reports suggest that around ten per cent of the workforce could be cut and Intel looks to concentrate on its core business. The company has recently sold off its communications chip business in June and the telephony division in August.

Intel is facing increasing competition from AMD and others in its core processor market after a number of decision that have left the company vulnerable. It has taken a major knock to market share in the server space after choosing to concentrate on 32 and 64 bit processors rather than those capable of running in both modes and it has also been late to start selling dual core processors.

"Intel is not able to comment on rumour or speculation," said an Intel spokewoman.