Intel says it will cut 12,000 jobs - about 11% of its workforce - but is not providing information on the 5,200 jobs provided by the company in Ireland.
The company is set to restructure following a decline in sales of personal computers.
The chip maker said the cuts will include "voluntary and involuntary departures" from its operations around the world. Most of the affected workers will be notified in the next 60 days.
Intel said the cuts will provide about 1.4 billion US dollars in annual savings by the time the cuts are completed next year.
The company, based in Santa Clara, California, is a leading supplier of computer chips, but PC sales have been declining steadily in recent years.
It is trying to focus on its most profitable lines of business, which include making processors for data centre computers and Internet-connected gadgets.
Intel employs over 5,200 in Ireland mainly in Leixlip, Co Kildare, but also in Shannon and Belfast.
In a statement issued to Independent.ie, the company said: "We are not providing site-specific information at this time, and we are still evaluating our plans for Europe.
"Overall, however, we expect that these actions will result in a reduction of up to 12,000 positions globally by mid-2017 through site consolidations, a combination of voluntary and involuntary departures, reevaluation of projects, and an increased focus on efficiency in a variety of programmes."
(Additional reporting by PA)