$Intel(INTC)$ _ Intel Hiring Freeze & Q2 Earnings Caution > 

Intel Corp has frozen hiring in their PC desktop & laptop chips division, according to a memo reviewed by Reuters, as part of a series of cost-cutting measures.

The memo also outlined other cost-cutting measures such as cancelling some travel for the group immediately, limiting participation in industry conferences and instructions to hold group meetings virtually when possible.

Shares of Intel Corp slid 5.3% after Citigroup analysts cut its estimates on the chipmaker for the second time in a week. Citi pointed to uncertainty about demand for personal computers and predicted the company could pre-announce weaker-than-expected earnings for the second quarter, 'neutral' rating on the stock with a price target of $45.

Intel shares are down nearly 28% over the past year and the company has told investors to brace for lower gross margins than it has historically earned as it spends heavily to catch up to rivals like Taiwan Semiconductor Manufacturing Co Ltd whose manufacturing technology has overtaken Intel's.

The company's client computing group is its largest by sales, generating $9.3 billion of its $18.4 billion in revenue in its most recent quarter. Once dominant, Intel's desktop and laptop chips face increased competition from Advanced Micro Devices Inc, and the division lost Apple Inc as a customer after Apple started using it own custom-designed chips.