Intel misses on earnings, to cut 4,000 jobs

Intel reported lower-than-expected earnings Tuesday in the second quarter and said that it would reduce the total number of employees by around 4,000 in the second half of 2002 as the slowdown in technology spending lingers on.

The Santa Clara, Calif.-based chipmaking giant reported net income of $446 million, or 7 cents in earnings per share, on revenue of $6.3 billion for the quarter ending June 30. Excluding one- time charges, earnings came to 9 cents a share.

While the revenue figure was within lowered projections from the company, analysts expected the company to report earnings of 11 cents a share excluding costs, according to First Call.

To cut costs, the company will trim its work force by approximately 4,000 employees in the second half, many through attrition, the company said. Intel currently employs 83,000. Last year, it cut approximately 6,000 positions.

Additionally, it will cut capital spending to between $5 billion to $5.2 billion. Earlier, the company said it would spend $5.5 billion on plants and equipment this year.

News source: Cnet

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