Cisco Systems, the No. 1 maker of networking equipment for the Internet, will cut between 3,000 and 5,000 regular jobs and most of its 4,000 temporary workers, the San Jose, Calif.-based company said. Chief executive officer John Chambers cited "uncertainties in the industry" and "global economic challenges" as reasons for the layoffs. The company had been on a growth spurt, adding around 23,000 employees over the last year and a half.
Intel Corp. said it will cut 5,000 jobs, mainly through attrition. The giant Santa Clara, Calif.-based chipmaker also said revenues will fall 25 percent below its fourth-quarter results of $8.7 billion, as the economic slowdown affects demand for personal computers. Intel, which has about 87,000 employees worldwide, said the cuts would be achieved over the next nine months.
A federal court in Wilmington, Del., is to decide today whether to OK American Airlines' buyout of cash-strapped Trans World Airlines, after eliminating all other bids from consideration. Last week, TWA's board endorsed the $742 million American offer over three rival bids. Chief executive officer William Compton testified in federal bankruptcy court that without the sale to AMR Corp., American's parent company, TWA would be forced to liquidate.
(c) Copyright 2001. The Christian Science Monitor