Intel To Cut 4,000 Jobs
A poor earnings report based on weak demand leads chip maker Intel to cut its work force by 5 percent.Intel Corp.s quarterly earnings came in below Wall Streets already lowered expectations today as the worlds largest PC chipmaker announced it would cut 4,000 jobs, or 5 percent of its work force, in the face of sagging demand for its processors. After the stock market closed Tuesday, Intel, of Santa Clara, Calif., reported second-quarter net income of $446 million, or 7 cents a share, on revenue of $6.3 billion. While total sales met Wall Streets expectations, earnings per share fell 2 cents per lower than consensus forecasts, according to Thomson Financial/First Call. Second-quarter net income excluding acquisition-related costs totaled $620 million, down 39 percent sequentially and 27 percent below the same period last year. Earnings excluding acquisition-related costs were 9 cents per share, a drop of 40 percent sequentially and 25 percent below the second quarter of 2001.
These results include the impact of the $106 million charge related to the gradual shut down of Intel Online Services.