EA to lay off 1,100 workers as net losses grow

Electronic Arts Inc. said Tuesday that net losses slid deeper in its third fiscal quarter as video game sales for the crucial holiday period came in below expectations.



The video game publisher also announced plans to lay off 1,100 people, or about 11% of its total workforce, and close 12 facilities in an effort to reduce its costs. EA, the force behind big-name game franchises like "The Sims," "Madden NFL" and "Need For Speed," is struggling to improve its game offerings while coping with a slumping economy that is hurting the ability of consumers to buy high-end consoles and titles.

"Although this is difficult to take apart the macro and the micro, a significant portion of the miss relates to our own performance," EA chief executive John Riccitiello said on a conference call with analysts. "Clear and simple, our titles did not perform to our expectations."

However, shares of EA picked up more than 5% in after-hours trading Tuesday as investors reacted well to the cost-cutting plans and outlook for the next fiscal year.

"Investors are probably liking the 2010 forecast," said Todd Greenwald of Signal Hill Advisors. "But it's fairly optimistic. They are taking $500 million out of operating expenses and expecting to grow their earnings. They are certainly not setting the bar very low."

Greenwald called the results for the December quarter "horrible." The company reported a net loss of $641 million, or $2 a share, for the period compared to a net loss of $33 million, or 10 cents a share, for the same period the previous year.

Excluding charges related to stock options and other items, the company said it would have earned $179 million, or 56 cents a share, for the recent period.

Total revenue rose 10% to $1.65 billion. Net revenue - which includes deferred revenue from game sales - came in at $1.74 billion. The company said sales for the quarter were driven by titles such as "FIFA 09," "Rock Band 2," "Need for Speed: Undercover" and "Left 4 Dead."

Analysts were expecting earnings of 88 cents a share on revenue of $1.9 billion, according to consensus forecasts from Thomson Reuters.

The layoffs are part of the company's efforts to cut its costs as the economy slows and it faces more competitive pressures from within the video game business. EA said the layoffs area expected to result in charges between $65 million and $75 million over the next 12 months.

It hopes the cuts will help it shave about $500 million from its operating expenses for its 2010 fiscal year.

For that year, which ends in March of 2010, EA said it now expects non-GAAP revenue of about $4.3 billion. Analysts had been expecting revenue of $4.68 billion for the year. Earnings, excluding charges, are expected to come in at $1 per share compared to $1.09 per share predicted by analysts.

Riccitiello outlined plans to focus more of the company's resources on the Nintendo Wii, which has passed up the Xbox 360 and PlayStation 3 as the most popular of the next-generation gaming consoles. He said the company has a "spectacular slate" of titles for the Wii set for fiscal 2010, including a Tiger Woods golf title and more sports offerings.

Source : Market Watch
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]

Texas Instruments to layoff 3,400 employees

Slackened demand in the chip industry and intense competition has hit Texas Instruments Inc., the Dallas-based chip giant! The company, likely to report a fall in its fourth-quarter sales to the tune of 33 percent, has announced that it plans to layoff 3,400 employees.

The planned number of job-cuts comprises 12 percent of the chip maker's total work force, which will be slashed by September end. While 1,600 employees will leave by the way of voluntary retirements and departures, the remaining will be specific job-cuts.

With the fourth quarter revenue of the company plunging to $2.49 billion from the year-earlier $3.56 billion, the announced layoffs, along with the 650 job-cuts announced in October, will together yield almost $700 million yearly savings for the company..

Ron Slaymaker, vice president of investor relations, said in an interview that the latest round of job cuts will extend over TI's global operations, and, by and large, will start becoming effectual from March end.

The total number of TI employees stood at almost 29,500 at the end of last year, of which 11,700 employees were in Texas. The company had 3,100 workers in Europe, and 2,300 in Japan.

Commenting on the company's move during a conference with the analysts, Slaymaker said: "It is a broad economic slowdown in which consumer consumption has dramatically weakened and likely will weaken further. We are planning for a weaker economic environment that could be around for a while."

Source : TopNews
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]

Cooper increases job cuts to 2,200 as profit falls

Electrical products and tool maker Cooper Industries Ltd (CBE.N) reported lower quarterly profit on Tuesday, reflecting weakening industrial and construction markets and said 2009 profit will be below Wall Street's expectations.

The Houston-based company said all of its markets and geographic regions were weak, with particular weakness in industrial markets, and said it has increased job cuts to more than 2,200 people from the 1,000 it planned earlier.

Net earnings fell 38 percent to $111.1 million, or 65 cents per share, from $179.3 million, or 98 cents per share a year earlier.

Earnings from continuing operations were 84 cents per share, according to Reuters Estimates, ahead of Wall Street estimates of 71 cents.

Revenue slipped 1 percent to $1.52 billion, slightly below Wall Street forecasts.

Cooper estimated 2009 earnings from continuing operations in a range of $2.45 to $2.80 per share, below analysts' estimate of $2.86 per share, according to Reuters Estimates.

Source : Reuters
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]

Sony to Announce Closing of Factory, 2,000 Job Cuts

Sony Corp. will announce the closing of one of two domestic television factories and the cutting of more than 2,000 jobs in Japan by the end of fiscal 2009, Nikkei said, without citing any sources.

Sony Chairman Howard Stringer, who will detail the plan at a news conference, will also downgrade the company’s fiscal 2008 earnings outlook, Nikkei said. The job cuts amount to about 3 percent of Sony’s domestic full-time staff, Nikkei said.

Source : Bloomberg
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]

Circuit City to liquidate rest of stores, lay off 30,000

Circuit City Stores Inc. plans to liquidate its remaining 567 U.S. stores and lay off 30,000 employees after failing to find a buyer or a refinancing deal.

The Richmond, Va., retailer (Other OTC: CCTYQ.PK) has locations in the Dayton area.

The nation’s second-biggest electronics retailer does not expect any money to be left from bankruptcy to pay its common stockholders anything.

The retailer of consumer electronics said last week that it was negotiating a sale with two prospective buyers, and was "optimistic" that a deal would be completed.

"We are extremely disappointed by this outcome," said James Marcum, vice chairman and acting president and CEO for Circuit City Stores. "The company had been in continuous negotiations regarding a going concern transaction. Regrettably for the more than 30,000 employees of Circuit City and our loyal customers, we were unable to reach an agreement with our creditors and lenders to structure a going-concern transaction in the limited timeframe available, and so this is the only possible path for our company."

Circuit City filed filed for bankruptcy Nov. 10, after posting a quarterly loss of $240 million. The Richmond, Va.-based company, on Jan. 5, filed a motion with the U.S. Bankruptcy Court that would allow it to sell its assets in pieces, or as a whole.

In a press release, Circuit City said it will provide more details in the near term about plans for the liquidation of the stores and other assets, the status of the company's Web site and firedog services operations, the status of its Canadian operations and plans for the company's bankruptcy proceedings.

Source : BizJournals
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]

NEC to lay off 1,200 temp workers

The NEC Electronics Corp. group will lay off 1,200 of its 1,400 temporary workers by the end of March, Kyodo News reported Thursday, citing company officials.

The major Japanese semiconductor manufacturer is not to renew the employment contracts of the temporary workers at its eight production plants and subsidiaries in Yamagata, Shiga, Kumamoto and other prefectures.

The ongoing global recession, which has greatly dampened semiconductor demand, forced NEC to make the decision to substantially reduce production, and cut jobs in consequence, said the report.

Source : ChinaView
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]

Sanyo cuts 1,200 jobs

Japanese electronics maker Sanyo Electric Co. said Thursday it will cut 1,200 jobs globally and barely break even in the fiscal year through March as sales get battered by sinking global demand and a strengthening yen.

Sanyo, which is being acquired by larger domestic rival Panasonic Corp., said the job reductions in its semiconductor division — 800 in Japan and 400 overseas — will be completed by the end of March.

"The job cut was due to a severe slump in the global semiconductor market," said Sanyo spokeswoman Chieko Gyobu. Half of the cuts will be full-time workers with the rest coming from part-time or contract workers, she said.

The cuts will amount to 5 to 10 percent of Sanyo's total work force in the semiconductor division. She declined to say a regional breakdown for the job losses abroad.

Revenue from Sanyo's semiconductor business is expected to stand at 140 billion yen ($1.6 billion) in the current fiscal year to March 2009, down from 12 percent year-on-year.

Earlier, Sanyo said it expects to post zero profit for the fiscal year ending March 31. In May, it had expected a 35 billion yen profit.

Sanyo said sales have dropped in electronics devices and semiconductors. Restructuring costs and the appreciation of the yen are also behind the lower forecast, it said in a release.

Osaka-based Sanyo also lowered its sales forecast for the fiscal year through March to 1.9 trillion yen from 2.02 trillion yen.

Sanyo posted 28.7 billion yen profit on 2.018 trillion yen sales in the fiscal year ended March 2008.

Its shares fell 3.9 percent to 148 yen. The announcement about the earnings downgrade and job cuts came after the market close.

Source : AP
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]

Japan's Sanyo braces for zero profit

Japan's struggling Sanyo Electric Co. is set to downgrade its earnings forecasts for the year to March, expecting a strong yen to wipe out its net profit almost entirely, according to a report.

Sanyo, which is to become a subsidiary of Panasonic Corp. later this year, will lower its forecast for group net profit from 35 billion yen (384 million dollars) to almost zero for the full year to March, the Asahi Shimbun said.

Its forecast of operating profit would be revised down by 40 percent to 30 billion yen from 50 billion yen, with sales expected to fall below two trillion yen for the first time in nine years, it said.

The company's earnings from microchip and other electronics parts are rapidly worsening due to the yen's appreciation, the Asahi said.

The company will announce the revised forecasts this week, the newspaper said without citing its sources.

The yen was trading at around 91 to the dollar at the end of last week, compared with above 99 at the end of March last year.

No comment on the report was available from Sanyo on Sunday.

Source : AFP
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]

Japan's TDK to cut 8,000 jobs

Japanese electronics component maker TDK Corp. said Thursday it would cut 8,000 workers and post its biggest net loss ever this fiscal year, due to falling orders and a stronger yen.

The company — known to consumers for its DVDs, audio tapes and other recording media — will cut the jobs as it closes four factories outside of Japan, said spokesman Kazutoshi Kogure. He declined to comment on which factories it would close.

TDK is the latest of Japan's big-name manufacturers to cut jobs and scale back production as the global economic slump unfolds. Others, including Toyota and Sony, have also announced cuts in recent months.

Kogure said the job cuts will come mainly from regular employees, although contract workers and others in the TDK group of companies will also be included.

TDK had a total of 65,500 workers as of the end September, the last time it released an official figure.

The company also said it now forecasts a net loss for the current fiscal year that runs through March, its first net loss in seven years. TDK expects a loss of 28 billion yen ($304 million), versus its previous forecast for a 25 billion yen profit.

It also cut its sales forecast to 673 billion ($7.32 billion) yen from 795 billion yen.

Kogure said the job cuts and factory closures would boost TDK's operating profit by 62.9 billion yen from next fiscal year, but the company could still finish

Source : AP
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]

Sony to cut 8000 jobs by 2010

Sony has said it will cut around 8000 jobs by 2010 in a bid to bring down costs across the company.

As the economic squeeze begins to spread from Europe and America into Japan, Sony believes it will need to cut 5% of its workforce to make ends meet.

The company has also revealed it will close two of its overseas manufacturing sites, with an aim to reduce plant operations by 10% over the next 15 months, particularly in the areas of LCD and mobile phone technology.

And finally, in an attempt to save around $1.1 billion by March 2010, the company will also be cutting manufacturing investment by around 30% as well.

Japan's economy has shrunk by 1.4% over the past three months, which has caused businesses to panic as that is more than four times the amount estimated.

"Particularly within its electronics business, where Sony has been most affected by the acute downturn in the economic climate, the company has already undertaken certain short-term measures, including adjusting production, lowering inventory levels, and reducing operational expenses", read a statement from the company.

"Going forward, Sony intends to adjust product pricing to mitigate the impact of the appreciation of the yen, curtail or delay part of its investment plans, and downsize or withdraw from unprofitable or non-core businesses".

"Furthermore, Sony plans to realign domestic and overseas manufacturing sites, reallocate its workforce and reduce headcount".

Sony has confirmed that the PlayStation division of the business will be under review with the rest of it, and could well be affected by the job losses, which have not been capped at the 8000 mark and could well exceed that if Sony see fit.

"In order to stay competitive in the accelerating global network environment, we will always carefully review and make structural changes, if necessary, in order to further expand and strengthen the PlayStation business around the world", said Sony Computer Entertainment.



Source : GamesDog
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]

ASML cuts 1,000 jobs

ASML is the latest company to report job cuts on the harsh lithography industry environment. The Netherlands-based provider of lithography systems will trim 10% of its workforce, comprising approximately 1,000 employees who are mainly on temporary contracts, as it looks to cut costs in 2009.

The job cuts will occur between now and Q2 and will mostly be made at ASML's Veldhoven, Netherlands, headquarters, its manufacturing site in Wilton, Connecticut, and at its training site in Tempe, Arizona, which will be closed, the company said.

"Never before have we witnessed such a sharp and sudden fall-off in lithography system demand, triggered by an unprecedented mix of falling end-demand for semiconductors, weak memory prices and restricted access to capital for our customers," said Eric Meurice, president and CEO of ASML, in a statement at the end of last week.

"This steep decline in our business activity is forcing us to adjust our organization in order to lower our cost base significantly by using the full flexibility of our business model, while maintaining our important strategic investments in research and development. Although painful for our stakeholders in the short term, the current effort offers ASML an opportunity to emerge healthier and fundamentally stronger when the overall semiconductor market recovers," Meurice said.

ASML said it further plans to shut down production facilities for a total of four weeks, spread over Q1 and Q2 of 2009, as a cost-cutting effort. ASML said it will also reduce discretionary expenses, including contracted activities, salary raises, and unspecified miscellaneous consumption.

Moreover, ASML said that due to the anticipated lower level of sales volume in the coming year and the introduction of new, more cost-competitive, scanner models, the company will take impairment charges on certain inventories and assets.

All in all, ASML expects to incur costs between $167 million and $208 million (120 million Euro and 150 million Euro) on the actions, the majority of which it will face in the current quarter.

The implementation of the actions, in addition to earlier actions taken within a six-month old program to improve overall efficiency, will result in a cost reduction of more than $69 million (50 million Euro) per quarter by Q1 2009, ASML estimated.

ASML also lowered its Q4 guidance in the statement, saying it now expects sales in to be between $625 million and $694 million (450 million Euro and 500 million Euro), compared with the guidance it issued on October 15 for sales of around $736 million (530 million Euro).

The company said that a "sharp decline" in new order intake, in addition to requests from customers to postpone backlog system deliveries, will translate into substantially lower sales in the first six months of 2009. The revised guidance calls for Q1 sales between $250 million and 4347 million (180 million Euro and 250 million Euro).

ASML is slated to disclose full Q4 2008 results and Q1 2009 guidance on January 15, 2009.

Source : ElectronicsWeekly
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]

Polaroid files for Chapter 11 Bankruptcy

Consumer electronics company Polaroid Corp said on Thursday it had filed for Chapter 11 bankruptcy in order to facilitate its restructuring.

The maker of iconic instamatic cameras said its bankruptcy was due to events at Petters Group Worldwide, which has owned the company since 2005.

The founder of Petters is "under investigation for alleged acts of fraud that have compromised the financial condition of Polaroid and other entities owned by Petters Group," the company said in a statement.

"Polaroid and its leadership team are not subjects of the ongoing investigation involving Petters Group," Polaroid said.

The company said the restructuring should not impact its day-to-day operations and that it was not seeking additional debtor-in-possession financing.

"Polaroid has entered bankruptcy with ample cash reserves sufficient to finance the Company's reorganization under Chapter 11," it said.

The case is In re: Polaroid Corp, U.S. Bankruptcy Court, District of Minnesota, No. 08-46617

Source : Reuters
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]

Tyco Electronics to Cut 2,500 Jobs Amid Restructuring

Tyco Electronics Ltd., the world’s largest maker of electronic connectors, said it will cut about 2,500 jobs worldwide, or about 2.6 percent of its workforce, as part of previously announced efforts to speed $100 million in cost reductions.

The Hamilton, Bermuda-based company isn’t detailing where the job cuts will take place until workers are notified, spokeswoman Sheri Woodruff said in an interview. Some employees in North America were told of the reductions this week. The company, run from Berwyn, Pennsylvania, has about 96,000 employees globally.

Demand for connectors used in cars, desktop computers and cell phones has slowed, prompting the company to say this month that fiscal first-quarter profit will be near the low end of its previous forecast range. The job cuts will take place by the end of second quarter in March, Woodruff said.

Separately, the company said it is temporarily shutting a plant in Portugal for two weeks as orders in Europe slow. Production will cease Dec. 19 and resume after the holidays, Woodruff said. The Wall Street Journal previously reported the shutdown.

Tyco Electronics declined 8 cents to $16.88 at 4:15 p.m. in New York Stock Exchange composite trading. They have declined 55 percent this year.

Source : Bloomberg
[tags : recession bankrupt collapse retrenchment financial news collapse stagnation economic slowdown financial collapse world recession global recession layoff job cut]