Tech Sector Short-Circuits

Once-insulated Silicon Valley fails to outpace slowdown
By Rob Quinn,  Newser Staff
Posted Nov 15, 2008 7:09 AM CST
Tech Sector Short-Circuits
Intel warns that revenue is plunging at a rate not seen since 2001.   (AP Photo/Paul Sakuma )

A sudden slowdown has sent the tech industry into a slump so severe some are comparing it to the dot-com bust, the New York Times reports. The sector was confidently chugging along as recently as September but last month saw orders for both business and consumer tech rapidly plunge—"like flicking a switch," according to one analyst.

Thousands of tech workers are being laid off, including at Sun Microsystems where 6,000 job cuts were announced yesterday. Investors are scrambling to offload technology stocks and many expect the credit crisis will mean a long and deep downturn for the industry. But optimists note that tech has much more cash than most sectors and believe that the healthiest firms will swallow strugglers and emerge from the slowdown stronger.
(More recession stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.