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.
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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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