The company will lay off 1,000 managers. This will combat "slow and inefficient decision making" at the company, he said in an internal memo issued inside the company earlier today. More layoffs could come. The memo says it's only a first step in the process to making Intel more competitive.
Intel has been seeing an increasingly large amount of competition, especially from AMD. Currently, they have over 100,000 employees worldwide, and it appears that some investors wish to see that cut back to 90,000 or even 85,000. Whether or not that will make Intel more “efficient” remains yet to be seen.