Intel on Tuesday announced that it will cut 10,500 jobs over the next year in response to competitive gains made by rival AMD, according to the Wall Street Journal (subscription required). The layoffs are about 10% of its workforce and will save the company around US$5 billion, but severance costs will add up to the neighborhood of $200 million.
Intel, which some pundits thought might cut up to 20,000 positions, announced the job cuts as part of a major restructuring effort that started earlier this year. They will come from management, marketing, and information technology.