Intel has disclosed plans to close five plants in a move that will affect between 5 000 and 6 000 employees around the world.
This comes just days after an executive warned employees that the semiconductor giant could be facing its first quarterly loss in 22 years.
The company has issued a statement explaining that it will restructure some of its manufacturing operations and align its manufacturing capacity to current market conditions.
"The company will consolidate and streamline some older capacity without impacting the deployment of new, leading-edge 45-nanometer and 32-nanometer manufacturing capacity," the statement reads.
The plants to be closed are wo assembly test facilities in Penang, Malaysia and one in Cavite, Philippines. In addition, Intel will halt production at Fab 20, an older 200mm wafer fabrication facility in Hillsboro, Oregon and end wafer production operations at the D2 facility in Santa Clara, California.
"The actions at the four sites, when combined with associated support functions, are expected to affect between 5 000 and 6 000 employees worldwide," says the statement.
"However, not all employees will leave Intel; some may be offered positions at other facilities. The actions will take place between now and the end of 2009."