Intel posts 43 percent jump in profit, cuts 2,000 jobs

Intel, the world’s largest chip maker, is once again seeing a considerable jump in profits. According to the company’s numbers, its third-quarter earnings rose 43 percent as strong demand for notebook computers and handheld devices drove sales of the company's microprocessors. Revenues for the July-September period climbed 15 percent to a record 10.1 billion dollars, compared to $8.74 billion in the same period last year. In a written statement, Intel president and chief executive Paul Otellini said:

"A combination of great products, strong and growing worldwide demand, and operational efficiency from our ongoing restructuring efforts led to record third-quarter revenue and a 64-percent year-over-year gain in operating income."
Intel reports that its microprocessor set new records during the quarter while the average selling price remained relatively flat, regardless of the recent pricing pressure caused by the competition with AMD. Despite the jump in profits, however, Intel set in motion more staff cuts, saying it would shed 2,000 jobs in the fourth quarter as part of a continued reduction in staff, cutting down the company's head count to about 86,000.