By Scott Moritz
Nortel (NT) plans a major restructuring and another round of job cuts as demand for tech gear plunges.
The Toronto networking equipment giant said Monday it would trim 1,300 jobs on top 1,200 cuts previously announced. Nortel had 32,550 employees at the end of 2007.
The company also said four top executives, including its head of sales and its chief technology officer, would leave at year-end.
The news comes as Nortel posted third quarter earnings that met lowered targets. The company warned, however, that 2008 sales would fall 4% — at the lower end of its previous guidance of 2% to 4%.
Like other tech shops that have lowered forecasts, including Qualcomm (QCOM), Cisco (CSCO), Microsoft (MSFT) and Intel (INTC), Nortel cited a sudden slowdown in orders that started in September and has shown no signs of letting up. Corporate spending cuts, tight-fisted phone companies and a weaker consumer demand have sent the tech sector into a [...]
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By Scott Moritz
What was a little fuzzy last month has become clearer of late: The sagging economy is weighing on Google (GOOG).
Goldman Sachs analyst James Mitchell cited signs of weakness in search advertising - Google’s biggest moneymaker by far — in cutting his revenue growth target for the current fourth quarter from 4% to 1%.
Mitchell is the second analyst this week to lower estimates for Google. On Monday Barclays analyst Doug Anmuth called for fourth-quarter sales to be flat with third quarter’s $4.05 billion. If so, it would be the first time in Google’s history that revenue has not grown from one quarter to the next.
The prospects of little or no growth sent Google shares to a three-year low of $300 Tuesday amid a broad market selloff. The stock has dropped 55% this year. And the news was not particularly good for the rest of the Internet sector with Yahoo (YHOO) dropping 5% to a 52-week low [...]
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