To become more competitive, Intel will fire 1000 managers.

In a memo sent by Chief Executive Paul Otellini Thursday, he told employees that some managers will be axed for the company to become more competitive.

Intel spokesman Chuck Mulloy confirmed the layoffs Thursday, saying they would “both reduce costs and improve decision-making and communications.” He didn’t disclose the financial costs or benefits of the cuts, but said Intel plans to share more details Wednesday when it discusses financial results for the last quarter. But it seems that this will help the company save $1B USD.

“You should expect that we will continue to take actions, including selective reductions, as we complete analyses and decisions about investments, expense levels and organizational structures,” Otellini said in the memo. “Over the last five years at Intel, the number of managers has grown faster than our overall employee population. Our efficiency analysis and industry benchmarking have shown that we have too many management layers, top to bottom, to be effective.”

We will probably see another people axed soon because you can’t just fire some managers and let other people with no manager or a manager with more people to handle.

Intel problems came with the announcement with the sale of their Intel’s XScale communications and applications chip technology to Marvell for $600 million and closing a lab in Glasgow where Intel had 19 people.

More, AMD is pressuring and last week, the company announced revenue of $1.21 billion, significantly less than the $1.3 billion average expected by analysts and a 9 percent decrease over the first quarter.

Intel will probably see a rise on their revenues since the release of their Core Duo processors for desktops because it seems that their prices will be below those from AMD who will also cut the prices on August.

All this means that Intel is trying to get the boat on float because as it is going now there is a small chance of them sinking a little bit.