Intel CEO Paul Otellini told his employees that the chipmaker could incur ins first quarterly loss in 22 year in Q1.

According to Bloomberg and the Wall Street Journal, Otellini said the first quarter will be too close to call due to the industry-wide slowdown. He reportedly made the comments in a Q&A session with Intel employees.

Otellini claims the company will focus on saving every nickel, and that there will be no merit pay or promotions.

Recently, Intel reported a 90 percent profit drop in Q4 and a 23 percent decline in revenue.

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