Intel reported lower-than-expected quarterly earnings Tuesday and said it will eliminate about 4,000 jobs this year as the slowdown in technology spending lingers on. The Santa Clara, Calif.-based chipmaking giant reported net income of $446 million, or 7 cents in earnings per share, on revenue of $6.3 billion for the quarter ending June 30. Excluding acquisition charges, earnings came to 9 cents a share and a little more than 10 cents a share excluding all one-time costs, said Andy Bryant, Intel's chief financial officer. "We expect to see a seasonal increase but we have tempered our expectations for the year," he said. "We have yet to see momentum for the economic recovery in our business."

While the revenue figure was within lowered projections from the company, analysts expected the company to report earnings of 11 cents a share excluding costs, according to First Call. To cut costs, the company will trim its work force by approximately 4,000 employees in the second half of 2002, many through attrition, the company said. Intel currently employs 83,000. Last year, it cut approximately 6,000 positions.