Intel has sold its optical networking components division to Cortina Systems, a maker of communications chips for telecommunications carriers, for an estimated $115m.

The sale, another in the chip giant's ongoing cost cuts, comes a week after it announced 10,500 layoffs in a complete corporate re-organisation. The sale will allow Intel to focus on its core products of PC chips and network processors, the company said. Financial details of the sale were not disclosed, although some reports have put it at $115 million.

Cortina said it would employ "a significant number" of the engineering, operations and marketing employees in the division.

Intel CEO Paul Otellini began the company's restructuring in April, when he told analysts that the company would earn $9.3 billion for 2006, down from $12.1 billion in 2005. Since then, he has sold off two other business units, laid off 1,000 middle managers, shuffled top executives, and announced a plan to shrink the company from 102,500 people in the second quarter of 2006 to 92,000 people by the middle of 2007.

The sale of the optical networking components division could add to the number of jobs lost. Intel did not specify how many workers it employs in that division, but the number is reportedly 120.