Chip giant Intel is to cut 5,000 jobs as revenue continues to fall. That's six percent of its global workforce.

Only last week Intel chief Chris Barrett said no job cuts were planned, despite admitting the company was experiencing a 15 percent revenue drop due to slowing chip sales.

“We are seeing a weakness in the computer industry,” said Sean Maloney, Intel director of sales and marketing.

“We are not sure when the situation will improve,” said an Intel spokesperson. “We hope the [job] cuts will come through attrition and will allow us to generate the extra revenue we need.”

The cutbacks are probably also designed to preempt stiffer competition from the likes of AMD, the chip upstart that is making greater inroads in what has been Intel's home turf.