SANTA CLARA, Calif. -- Amid possible cuts in capital spending, Intel Corp. is reportedly expected to announce "massive layoffs" and other drastic cost-cutting measures today, according to today's Wall Street Journal.
Craig Barrett, CEO of Intel, is scheduled to speak to employees after the market closes, speculating rumors of the layoffs, according to the report.
The company is also expected to announce its Q2 results today. Last month, Intel said it expects second-quarter revenue to be between $6.2 billion and $6.5 billion, compared to the previous range of $6.4 billion to $7.0 billion.
The lower revenue expectation is primarily due to softer than expected demand in Europe. Microprocessor units are at the low end of the normal seasonal pattern, with a weaker than expected mix. Intel's enterprise, mobile and communications businesses are in line with expectations. The company continues to expect a seasonally stronger second half.
And, in what could cast a shadow at the Semicon West trade show this week and next, Intel has reportedly pushed out the chip-equipment deliveries for its high-volume, 300-mm wafer fab in New Mexico, according to a report from Deutsche Banc Alex Brown in San Francisco on Monday.
The microprocessor giant could also cut its 2002 capital spending plans by up to 20%, according to the report. Given that Intel is the world's largest buyer of semiconductor equipment, the reported cut in capital spending could be bad news for tool makers heading into Semicon West (see July 15 story ).
