Intel reports on quarter of massive job cuts

Intel is set to report on a traumatic quarter in which it announced plans to shed 5,000 jobs.

So far 2001 has been dominated by profit warnings from major technology companies such as Dell, Yahoo! and Cisco which have made investors very nervous.

Last month the value of major US technology shares plummeted after Intel confirmed that it was not doing as well as hoped.

The company said it was axing 5,000 jobs at a time when earnings were likely to be a lot weaker than the market expected.

On Tuesday Intel is expected to report first quarter earnings of 15 cents a share, down from 36 cents a year ago, while sales will probably drop from £5.59bn to £4.57bn.

Last month Intel announced it joined forces with several medical research organisations to create a "virtual" supercomputer for medical research.

The American Cancer Society, the National Foundation for Cancer Research, Oxford University and United Devices is helping Intel with the project, which will initially involve leukaemia research.

Scientists will be able to take part in the programme by downloading a small software application from Intel. It will operate during normal computer use much in the way a screensaver does and shares information with United Devices' data centre.