Intel to layoff staff as profits fall

Intel to layoff staff as profits fall
Tom Foremski
Intel will layoff about 3,000 staff as it reports fiscal first quarter profits 36 per cent lower than last year and reorganises operations to take into account a glut of PC systems.
First quarter sales were $6bn, down 7 per cent from the previous quarter. Profits were $1.3bn, 27 per cent lower than the previous quarter. Intel said it expects second quarter sales to be flat or below the first quarter due to slow demand in Americas, Japan and European markets.
“This was a disappointing quarter. The PC industry seems to have gotten ahead of itself, building more product than end-customers purchased,” said Intel chairman and CEO Andrew Grove.
Intel revealed that it has been bolstering its flagging stock price by purchasing more than $1.8bn of its shares in the first quarter rather than investing in new production facilities.

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