Ericsson profit falls 92%
Ericsson AB, the world’s largest maker of wireless networks, has reported a 92 per cent drop in the company’s fourth quarter profit, as the phone companies reduced spending.
Ericsson’s net income dropped to USD 43.4 million or 314 million kronor from 3.89 billion kronor a year earlier, the company said in a statement.
The Stockholm based company was however anticipating a profit of 2.5 billion kronor.
Yahoo to go for weeklong shutdown
In its bid to boost it’s cost saving efforts, Yahoo! announced that the company;’s offices shall remain shut from Christmas to New Year.
This cost-cutting move ends probably the worst year in Yahoo!’s history as the company saw its revenue declining for the first time since 2001.
This shall be the first time in the history of Yahoo! that the company wants most of its 13,200 employees to utilize their unpaid leave during the holidays. During the Dec 25th to Jan 1st period, onlt the employees performing certain essential duties will be working.
The Sunnyvale, California, based internet giant earlier eliminated about 2,000 jobs and shed various other expenses since September 2008 to sail through the worst economic slowdown since the WW II.
Not only this, several other Silicon Valley companies traditionally close most of their offices during the holidays.
Nokia Siemens to cut 5,800 jobs
World’s largest yet the struggling telecom equipment maker Nokia Siemens Networks aims to cut up to 5,800 jobs and save more than USD 1.48 billion, (1 billion euros) to stay afloat in the market, specially against the Chinese counterparts.
The company is also looking to rejuvenate its operations expecting to gain from its stronger position in offering services to operators.
Pal Zarandy, partner at telecoms consultancy Rewheel observes, “To match the commercial flexibility demonstrated by Chinese vendors, NSN had to cut back its production, R&D and overhead costs.”
Last month market leader Sony Ericsson too reported third-quarter earnings below expectations.
NSN, a joint venture of Nokia and Siemens, said it aimed to cut 500 million euros in annual fixed costs by the end of 2011, slashing up to 5,800 of the firm’s 64,000 staff.
Google dumps 200
Recession has claimed another 200 jobs and this time it’s Google. Search engine giant, Google Inc. is discarding almost 200 staffers. These lay offs are rather the largest round of layoffs, clearly showing how badly has the economic slump in the markets affected even the top shots.
The search giant announced this statement about the job cuts on Thursday. This has affected less than 1 percent of the 20,200 employees of Google. However, this figure is almost insignificant when compared to the no. of job cuts in various other sectors including newspaper, retailing, automobile and financial services industries during the past year.
In an attempt to avoid a further fall of its stock prices and protect its profit margins, Google is executing various cost cutting programmes to trim its expenses.
The search giant has already reduced some employee perquisites, dumped outside contractors and closed services that aren’t paying off.
Google hasn’t seen a slump in its performance even during the bad times of recession, however going by the predictions of various analysts; the Mountain View based company can soon see its first quarterly loss.
Recession knocks at Technology’s epicenter - Silicon Valley
It’s being talked about in every corner of the globe. And now, even in the technology’s hub, Silicon Valley. The global recession has now begun to impact the Technology’s Mecca, and worst, it’s likely to stay longer.
When John Donovan, chief technology officer at Dallas-based AT&T Inc., said “Consumer technology changes so fast that any company that tries to pause is likely to be overrun by its competitors”, it was strongly felt that the pace of the technological developments is least likely to slowdown fearing recession.
However, tech giants like Intel Corp and Microsoft Corp, Hewlett-Packard Co., Yahoo! Inc., Adobe Systems Inc., Sun Microsystems Inc. and Palm Inc. are amongst the many firms who have decided to trim their staff by many thousands. This move from the tech world comes as an effort to cope up with the financial meltdown which has forced the industry to hack their advertising and investment expenses.
Silicon Valley, the corridor of office parks stretching between San Francisco and San Jose, is the headquarters of many world renowned technology companies. It has lost an estimated 11,700 jobs last year and the analysts say that this is just the tip of the iceberg!
Going by the official figures, California’s unemployement rate hit a 14-year high of 9.3 % in December 2008, 2.1% above the national average of 7.2. And also, any further increment in the figures should not be surprisig for anyone.
Believing the Goldman Sachs Group Inc., the global expenditure on computers and softwares is expected to slip by another 8 percent in the financial year 2009-10 in the U.S., Western Europe and Japan.
Andy Miedler, a senior technology analyst at Edward Jones, feels, “Layoffs and cost-cutting are unfortunate, but companies have to make tough decisions in a rough economy to preserve their own financial position.
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