The job cuts are the latest instalment in the chipmaker's plan to eliminate 3,000 positions, or 4.4 percent, of its total workforce to deal with the slowdown on demand for PCs and computer chips. Intel said in June that it extended its deadline to cut 3,000 positions until the end of the year.
The Massachussetts layoffs bring Intel almost halfway to its goal.
Intel, the world's largest chipmaker, is facing many challenges within and outside the chip industry. A downturn in demand for PCs and a market slump in Asia, formerly the fastest growing market for technology companies, has dried demand for chips. The demand slump comes at a time when plants have vastly improved the quality and quantity of chips, flooding the market, which further drives down prices. On top of this, Intel faces renewed price competition for the low-end market, from rivals such as Advanced Micro Devices.
Intel expects third quarter sales to rise 10 percent from the previous quarter. Analysts expect the chipmaker to post a 79-cent profit for the quarter, down from 88 cents a share earned in the same period last year.
Intel fell 1 1/16 to 83 9/16 on Tuesday.