Business and Capital Market Analysis !!!

(RTTNews) - In recent days, many technology companies have announced plans to cut jobs and restructure their operations to reduce costs. Many have issued profit warnings for the current quarter and the full year.

Market research firm Gartner, Inc. (IT) said last month that IT spending would slow in 2009, as global economic problems are impacting IT budgets.

Peter Sondergaard, senior vice president at Gartner and global head of Research, said, "Developed economies, especially the United States and Western Europe, will be the worst affected, but emerging regions will not be immune. Europe will experience negative growth in 2009, the United States and Japan will be flat."

Nokia Corp. (NOK: News ), the world's biggest maker of mobile phones, on Friday lowered its outlook for industrywide mobile device volumes for the fourth quarter and the full year 2008, citing a sharp pull back in global consumer spending amid the global economic slowdown and unprecedented currency volatility.

Earlier Friday, software and computer server maker Sun Microsystems Inc. (JAVA: News ) said it plans to slash up to 6,000 jobs, or 18% of its global work force, as it scrambles to cut costs to offset a devastating slump in sales of its high-end servers. Sun also said its software chief, Rich Green, has resigned, as the company splits its software division into three new business groups.

Intel Corp. (INTC: News ), the world's biggest chipmaker, on Wednesday lowered its fourth quarter revenue forecast, citing significantly weaker than expected demand in all geographies and market segments.

Intel's announcement came soon after chipmaker National Semiconductor Corp. (NSM: News ) lowered its second quarter revenue forecast and announced plans to cut 330 jobs, and semiconductor equipment maker Applied Materials Inc. (AMAT: News ) reported a 45% drop in fourth quarter profit and said it will cut 1,800 jobs.

Gartner last week reduced its estimate for semiconductor industry growth in 2009 to 1% from nearly 8%, citing the impact of the economic crisis.

Chipmaker Qualcomm Inc. (QCOM: News ) last week reported a 22% drop in fourth quarter profit and forecast first quarter and fiscal year 2009 revenue and earnings below analysts' estimates.

Also last week, Cisco Systems, Inc. (CSCO: News ), the world's largest computer networking gear maker, reported first quarter profit that remained essentially flat with last year even as sales increased 8% in what it called a very a challenging global economy. However, Cisco chief executive John Chambers warned on a conference call that the company's second quarter sales could fall 5% to 10% from a year ago.

Texas Instruments Inc. (TXN), the world's second largest maker of mobile phone chips, last month reported a 27% drop in third quarter profit and forecast fourth quarter revenue and earnings below analysts' estimates. The company also said it was in talks with potential buyers to sell part of its wireless operations.

Even Microsoft Corp. (MSFT: News ) could not buck the impact. The software giant last month reported first quarter profit that rose a modest 2% from last year, as revenue growth slowed amid the challenging economic environment. The company forecast second quarter revenue and earnings below analysts' current consensus estimates and lowered its revenue and earnings forecast for the fiscal year 2009.


Related Post :

1. Sun Microsystems Plans To Cut 6,000 Jobs
2. Nokia Siemens Networks plans of proposed job cuts in Finland and Germany
3. Nortel posts US$3.41 bln loss in Q3; to axe 1,300 jobs
   

1. Tech firms feel impact of economic crisis, 11/14/2008 7:04 PM ET.