"We are making hard but necessary decisions to streamline the organization," writes the tech giant's CEO in a memo to employees.

Intel confirms it will spin off its Network and Edge Group (NEX) as part of a massive restructuring under CEO Lip-Bu Tan to refocus on core chip businesses.

The layoffs are one of the first major decisions made by Intel Chief Executive Lip-Bu Tan (pictured), who took over the company’s top job in March, replacing former head honcho Pat Gelsinger in an effort to arrest a long, slow slide into financial trouble.

Intel canceled multiple manufacturing projects in Europe and delayed its Ohio chip plant for the second time this year.

Intel is going to end the year with a workforce that is over a fifth smaller than last year, it said on Thursday, and new CEO Lip-Bu Tan presented a blueprint for a more cost-disciplined, streamlined chip maker that would issue “no more blank cheques”.

The disclosure came as Intel published its second-quarter financial results today. The chipmaker said it plans to end the year with a “core workforce” of around 75,000 staff, which would mean it loses almost a third of its employees in a space of about 12 months. The reductions will come via layoffs and attrition, the company said.

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