Intel job cull sends share price tumbling

Shares in Intel fell eight per cent on early trading in Frankfurt after the company announced a profit warning and job cuts. Intel will not meet analysts earnings expectations in the coming quarter and is to cut 5,000 staff in an effort to reduce costs.

In a statement delivered on Thursday the chip giant said it is now expecting revenue to be down 25 per cent on the previous quarter, with analysts previously predicting profits down just 15 per cent. It also said its margins will be slimmer than previously thought, shaved from 58 per cent to 51 per cent. Intel said the job losses will be found mainly through natural attrition.