INTC warns, cuts 5,000 jobs (INTC) by Chris Kraeuter
Intel (INTC) said the current PC malaise has spread to the networking, communications and server sectors. The company warned about financial results and intends to cut 5,000 jobs. The company now expects first quarter revenue to fall 25 percent sequentially compared with previous expectations for a decline of 15 percent. Based on fourth-quarter revenue of $8.7 billion, first-quarter sales should be about $6.53 billion. Analysts surveyed by First Call/Thomson Financial currently expect revenue of $7.4 billion to be reported on April 18. Gross margins are expected to contract 7
percentage points to 51 percent due to lower revenue. Also, Intel said it will cut 5,000 jobs during the next 9 months, primarily through attrition.
Intel (INTC) said the current PC malaise has spread to the networking, communications and server sectors. The company warned about financial results and intends to cut 5,000 jobs. The company now expects first quarter revenue to fall 25 percent sequentially compared with previous expectations for a decline of 15 percent. Based on fourth-quarter revenue of $8.7 billion, first-quarter sales should be about $6.53 billion. Analysts surveyed by First Call/Thomson Financial currently expect revenue of $7.4 billion to be reported on April 18. Gross margins are expected to contract 7
percentage points to 51 percent due to lower revenue. Also, Intel said it will cut 5,000 jobs during the next 9 months, primarily through attrition.
