Intel has announced a very poor set of second-quarter
results and pledged to carry on cutting operating costs and
jobs.
Last week in the run-up to the results, which were posted
yesterday, the company announced that 1,000 managers would lose
their jobs immediately.
Intel was expected yesterday to announce a further big raft of
redundancies among its lower ranks, but instead said the ongoing
job cuts would be targeted and in smaller numbers over the next few
months. However, the eventual total number of jobs to go is
expected to be significant.
Intel announced second-quarter sales of $8bn (£4.5bn), 13% down
on the second quarter last year. Operating profits were $1.1bn (60%
down on last year) and net profits reached $885m (down 57%).
Total sales of microprocessors was lower, as was the average
selling price. Intel also said the sale of chipsets was flat and
sales of motherboards lower, although.shipments of Flash memory
units were higher.
Intel has pledged that the recent introduction of its Core chip
family will help it boost its financial performance. The chips are
faster and more energy-efficient and will help Intel in its fight
against smaller rival AMD, which is taking away market share from
Intel.
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