INTEL today confirmed staff at its European headquarters in Swindon face job losses in a global scale down of 4,000 workers.

The world's biggest computer chip-maker, which has a 750-strong workforce at Piper's Way, Old Town, said it was too early to know yet where and when the cuts would come, but the reductions are expected to be completed by the end of this year. The company said the move was due the downturn in the personal computer market and a slowdown in corporation spending in information technology.

Intel spokesman Graham Palmer said the scaledown represented about five per cent of the total workforce and this would probably be reflected across Europe, Africa and Middle East.

"Due to business conditions, through the rest of the year, it is planned to reduce Intel's worldwide number of employees by 4,000," he said.

"Currently the number of people we employ globally is 83,000. The cuts will be determined by business needs and it is too early to identify specific location reductions. I would emphasise this is not a question of 4,000 layoffs."