More rough news for the technology sector emerged Thursday as Corning Inc.
said it will slash about 825 jobs and 3Com Corp. forecast lower-than-expected
Corning said the ax fell at its Photonic Technologies division, severing
workers at its Benton Park, Pa., and Erwin Park, N.Y., facilities.
Quickly becoming an all-too-familiar refrain among technology companies,
Corning said a soft telecommunications market prompted the decision.
Corning added that Thursday's cuts do not include workers at its fiber optic
glass unit -- the company's largest -- as demand for that product continues to
However, two of the vendor's largest customers -- Lucent Technologies and
Nortel Networks -- have also announced plans to cut more than 20,000 jobs
Investors applauded Corning's cost-cutting move, driving shares up almost 12
percent to $30.25 each.
The news on Wall Street wasn't as good for 3Com, which said sluggish sales
caused it to lower forecast third-quarter revenue to between $625 million and
$640 million. In December, 3Com said it expected to pull down between $725
million and $750 million.
The company's shares plummeted almost 18 percent Thursday, closing at $7.50
each. Its 52-week high occurred one year ago to the day, when 3Com shares were
at $119.75 during intraday trading.
On Monday, 3Com said it would slash 1,200 jobs, equal to about 10 percent of
its work force.
The smarter way to stay on top of the multichannel video marketplace. Sign up below.