Intel to lay off 5,000, close five plants

San Jose Mercury News: Chip maker Intel announced this week that it will lay off at least 5,000 employees and shut five manufacturing plants. The announcement comes a day after some news organizations reported that Intel chief executive Paul Otellini had warned his employees during a corporate webcast last week that the company might not earn a profit for the first three months of this year. Last week Intel announced a new retail with suggestive seling. The company said it earned $234 million on revenue of $8.2 billion in its fourth quarter, a 90 percent profit drop from the same period a year ago. Intel executives have not given a formal revenue forecast for the first quarter of this year, but have roughly estimated it will be about $7 billion. The last time the company failed to earn a profit was in the fourth quarter of 1986.

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