Intel is to cut 5000 jobs and expects to report results below expectations at the end of this quarter. Coupled with recent negative announcements by companies like Yahoo and Cisco, the news all but confirms that the US economy and the technology sector are in the midst of a significant downturn.
Intel said revenue for the first quarter will be down approximately 25% from last quarter’s revenue of $8.7 billion. That’s lower than an earlier prediction that first quarter revenue would be down 15%.
Intel said gross profit margins will fall to 51% from the previous expected level of 58%.
The 5000 confirmed layoffs will take place over the next 9 months, predominantly through attrition, the company said in a statement.
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