Intel still isn’t saying that they will be taking a loss, but they aren’t suggesting it will be a positive quarter either.  The Register’s coverage suggests that Intel employees are worried about job security at this point, and are advocating a solution like AMD has recently adopted; salary cuts for everyone. 

This is going to be a very stressful and unpredictable quarter for both major chip manufacturers.  If the imminence of job cuts at Microsoft is as close as OCModShop implies this quarter, you had better buckle in, it is going to be a rough ride.

“INTEL’S CEO, Paul Otellini, has fessed up to the possibility the firm may report its first loss this quarter after 21 years of profitability.

An internal memo from Otellini to employees purportedly notes that after 87 quarters of profit, 2009’s first quarter is “too close to call”.

The financial crisis and ensuing slowdown in the global PC market means Intel factories have had to run below capacity, eating away at company profits. Coupled with Chipzilla’s admission last week that the firm’s fourth-quarter net income saw a 90 per cent slump, it is not inconceivable the chip behemoth may have taken a serious hit from the crunch monster.”

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