Intel will announce thousands of job cuts worldwide this week following the release of an internal review, according to reports.

Chief Executive Officer Paul Otellini told employees in an email on Thursday that he would reveal the results of the review in an internal webcast on Tuesday.

A spokesman for Intel meanwhile said the company is on track to announce a restructuring plan some time this month. "But we are not announcing plans to do anything at this stage," said the spokesman, calling talk of lay-offs "speculation".

Intel warned in April that its profits would fall sharply this year and said it would restructure the company to cut spending by more than $1 billion. "We are going to restructure, re-purpose and re-size Intel for the future," Otellini said at the time.

The company has battled this year with a slump in the growth rate of PC sales and from increased competition from AMD, which has been increasing its share of the market, particularly in servers.

Intel has vowed to claw the market share back with a new generation of dual-core microprocessors that it started rolling out in June.