Irish staff safe as Intel plans worldwide job cuts

Computer giant Intel - the employer of over 4,500 people in the Republic - has said it is to cut 5,000 jobs worldwide due to slowing sales.

But the company will not be seeking redundancies from its operation in Ireland. Intel Ireland Public Affairs manager Mr Bill Riley told ireland.com1,500 job losses would result after the closure of a plant in Puerto Rico.

Mr Riley said the rest of the job cuts would result from a stringent replacement policy for people who either retire or leave. "We will apply a stricter regime when replacing people worldwide," he said.

He stressed Intel Ireland was still trying to recruit critical-skilled engineering staff.

The world's largest computer chip-maker says demand for its chips is at its lowest for years.

Intel says the slowdown in demand for personal computers has continued and spread to the communications sector.

As a result, Intel says first quarter revenues will come in 25 per cent below the $8.7 billion it reported last quarter.

Wall Street analysts had been looking for first-quarter revenue of around $7.4 billion.

It says most of the 5,000 jobs will be lost by "natural attrition" over the next nine months.

Europe and Asian markets have been relatively strong compared to a weak US market. But Intel reports an increase in customer cancellations in Europe and other markets outside the US.

Despite this revenue shortfall Intel is sticking to its $7.5 billion full-year capital soending plan.

Additional reporting PA