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Intel to cut staff after missing expectations

Intel to cut staff after missing expectations

Intel's recent warning of lower second-quarter revenue has proven to be on the money, as the chip maker announced revenue of US$6.32 billion and net income of $446 million. The company also announced that it will lay off 4,000 employees in the second half of 2002.

The company has about 83,000 employees in total.

Intel failed to meet analyst revenue forecasts of $6.35 billion. Intel gave a revenue warning June 6 and announced second-quarter revenue would be between $6.2 billion and $6.5 billion, down from its previous guidance of $6.4 billion to $7.0 billion.

Net income was down 52 per cent from first-quarter results of $1 billion, but up 128 per cent from $196 million in the second quarter last year. Revenue fell 7 per cent from first-quarter results of $6.78 billion, and stayed flat compared to the second quarter of 2001.

Intel said third-quarter revenue will be between $6.3 billion and $6.9 billion. Capital expenditures for the third quarter will be less than expected, between $5 billion and $5.2 billion, down from expectations of $5.5 billion, due to "non-fab-related spending reductions," the company said.


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