Bad Day So Far For Tech
It's a bad day so far for technology companies.
All you have to do is look at the Nasdaq to see -- more than an hour into the trading day, the tech-heavy index is down 3 percent.
Here's a list of today's bad tech news:
-- Software giant Microsoft said this morning that it's laying off 5,000 employees, or more than 5 percent of its workforce, over the next 18 months. It is believed to be the first-ever company-wide layoffs in the Redmond, Wash., firm's history.
Microsoft also disappointed Wall Street by missing its second-quarter profit estimates. Result: Shares of Microsoft are trading down more than 8 percent. Here's a link to Microsoft chief executive Steve Ballmer's letter to the troops today.
-- Chip-king Intel said that it is cutting up to 6,000 jobs and is closing a factory in, of all places, Silicon Valley. The company reported a 90 percent drop in fourth-quarter profit last week.
-- Sony this morning forecast its first loss in 14 years, as chief executive Sir Howard Stringer said that cost-cutting measures have not gone far enough. The company is trying to slash the workforce at its television division by 30 percent. The last loss booked by Sony -- in 1995 -- was the company's first and so far only loss.
Sony pioneered the idea of media synergy, promising to combine its electronics products with its movie and music businesses, but substantial success has never come, owing largely to Sony's corporate culture of business units operating in silos.
January 22, 2009; 11:05 AM ET
Categories: The Ticker | Tags: Intel, Microsoft, contraction, recession
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