USA Today
Hopes dimmed yesterday for an economic spark from the technology sector later this year as giants Nortel Networks, Dell Computer and Hewlett-Packard cast doubt on future quarters.
Nortel, the world’s top supplier of optical gear, slashed its revenue and profit forecasts for 2001 and said it would cut 10,000 jobs this year — laying most of the blame on the slowing U.S. economy.
The Canadian company warned that it would post a first-quarter loss of 4 cents a share on $6.3 billion in revenue, against Wall Street earnings expectations of 16 cents a share and $8.1 billion in revenue.
Dell said it would lay off 1,700 employees. It also warned that current-quarter revenue would fall 8 percent to $8 billion from the same time last year.
Dell will write off $105 million for the job cuts. No more cuts are planned. For the fourth quarter ending Feb. 2, Dell’s net income rose 16 percent to $508 million, or 18 cents a share, from $436 million, or 16 cents a share, a year ago. That fell a cent short of estimates. Revenue rose 28 percent to $8.7 billion.
Hewlett-Packard said it expects to meet its earlier revenue guidance for the second fiscal quarter in the low to mid-single digits — down from double-digit growth last year.
Other companies announcing layoffs yesterday included:
 Alltel Corp. The Little Rock, Ark., telecommunications firm said it is eliminating about 1,000 jobs, or 3.7 percent of its work force, amid a slower economy and tough competition.
AT&T Corp. The firm’s broadband unit will lay off 450 workers, or 4 percent of its work force, in Washington state.
American Management Systems Inc. Technology consulting firm in Fairfax, Va., will lay off about 700 workers, roughly 10 percent of its U.S.-based work force.
Sun Life Financial Services of Canada. Will cut 1,700 jobs, or 85 percent of its workforce, at its operations in Britain due to disappointing sales.
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