Intel is preparing to lay off 1,000 managers across its global operations as part of an ongoing cost-cutting programme.

The job cuts span all management levels and will be carried out over the coming days, the company said.

"Only managers are affected by this action," Intel chief executive Paul Otellini wrote in an email to employees that was obtained by vnunet.com's sister publication The Inquirer. 

"This step is important because it addresses a key problem we've found in our efficiency analysis: slow and ineffective decision-making resulting, in part, from too many management layers."

Intel began a corporate restructuring earlier this year seeking to cut $1bn in annual expenses. The reorganisation follows a drop in the chipmaker's revenues in the face of fierce competition from smaller rival AMD. 

AMD has taken a technology lead in the CPU market in recent years with the introduction of the world's first 64-bit x86 processors and the first dual-core chips.

Intel sold its Xscale chip business for smartphones and PDAs to the Marvell Technology Group for $600m last month.