Deathwatch - Intel profits slip, Dell job losses, PCWB ok for now
While it's hardly the end of the user-friendly porn delivery system known as the internet, a second profit warning from Intel can hardly be considered good news. In total, the microchip manufacturer are warning that profits from the final quarter of 2008 will be down by 20 per cent, described by the Financial Times as a "rapid and unexpected" decline.
Intel are blaming the losses on “further weakness in end demand and inventory reductions by its customers in the global PC supply chain.” In other words, while businesses are struggling with rising costs and a decrease in sales, they're making do with older IT infrastructures instead of upgrading.
Meanwhile Dell is cutting 1,900 of the 3,000 jobs at its manufacturing site in Limerick, as part of a $3billion global cost-cutting effort. Again, the company seen global profits slip because consumers are buying fewer computers in the downturn.
Finally, Bitterwallet received an anonymous comment concerning PC World Business:
**** PC WORLD BUSINESS CLOSURES ****
PC World Store Managers have been briefed about further redundancies. These include closure of the PC World Business units within stores - even when many of them have just been refurbished in a UK wide multi million pound store transition package.
We called the PR agency for PC World Business, who denied that any such closures were occurring, or that any store managers had been briefed of any such action.