According to several insiders from Intel, Intel cut hundreds of IT employees last week. Intel confirmed layoffs but declined to disclose the exact number and reasons.

In a statement, Intel said that changes in the workforce are driven by constantly assessing business needs and priorities, and that the company will treat all affected employees with professionalism and respect.

The layoffs include Intel’s largest company in Oregon, which has more than 20,000 people. A source said that the percentage of layoffs in other regions is the same as that of the Oregon company.

Although Intel predicts that revenue will be flat in 2019, sources said that last week’s layoffs did not seem to be about cost savings, but about changes in Intel’s internal technology system management model. Intel has signed contracts with several IT contractors in the past, but now decides to integrate all operations into a single IT contractor, Infosys. Therefore, due to the reduction in the number of contractors, Intel does not need so many managers.