Intel, with a global workforce of 107,000, said it was reacting to "evolving market trends."
The company said the jobs will be eliminated through retirement or reassignment of workers, with some workers expected to leave voluntarily, CNNMoney reported Saturday.
"This is not a layoff. It's not a giant, one time action. This is a target employment rate for the end of the year," said Intel Spokesman Chris Kraeuter. "We're making decisions on how to design our resources to better meet the needs of our business."
Intel still derives most of its revenue from chips for personal computers, having failed to keep up with a consumer shift away from personal computers in favor of mobile devices, the New York Times reported.
"There's going be a significant shift in investment over the course of the year," said Intel's Chief Financial Officer Stacy Smith.
Intel will put more of its money behind chips for "things like the data center, tablets, low-power systems on a chip," Smith said.
The Times said Intel earns nearly two-thirds of its revenue from chips for personal computers, although revenue from PC chips fell 4 percent in 2013 to $33 billion.
Intel projected sales for 2014 would be flat.