The market and media is rife with speculation over possible layoffs to the extent of 20,000 jobs at Intel, the world's largest chipmaker. 

Paul Otellini, the company's CEO is expected to announce to employees and the media, the results of its three-month long “efficiency analysis program” on Tuesday, Sept 5. 

Intel had launched this program in response to dipping sales and loss of market share to Sunnyvale-based AMD. The company had already announced its intention, more than a month ago, to slash 1000 managerial jobs and also shed its communications and cell phone units.

Otellini had earlier informed the analyst community that he plans to restructure the company to do away with weak businesses and also cut manufacturing costs.

According to a Wall Street Journal report, as many as 20,000 workers could be cut, though some of this reduction would come as the result of a sell-off of unprofitable divisions.

"It's clear that Intel has to realign its cost structure to compete with a revitalized AMD," an analyst was quoted saying to eWEEK. 

The company has around 100,000 employees world wide and 3000 employees in India including engineering and sales and marketing staff. The Intel India development center has also come under the efficiency program's scanner. However the company has declined to comment on the possibility of job cuts in India.

In September last year, 250 Intel India employees were fired from their jobs for faking bills to claim allowances.

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