Recession hits tech and telecommunication companies

Sony posted a loss for the first time in 14 years

 

 

The tech and telecommunication sectors took a big blow in teh past 24 hours as company announcements showed the vulnerability of such sector.

Sony was the first company to start the round of negative announcements as it posted its first loss in 14 years. 

Nokia then followed. It said that its sales were set to go down by 10% in 2009. This means that the mobile phone market will get smaller and more competitive in 2009.

But, possibly the worst result of the day was Microsoft which announced it is going to axe 5,000 workers for the first time since 1975. This is 5% of Microsoft’s workforce. 

It was Samsung’s turn early this morning when it posted its first quartlerly loss ever. This sent its shares in Seoul down 4%.

However, Google saved the day posting financial results that beat analysts’ expectations.

Takeover talks for Tomb Raider publishers

Takeover talks for English game publisher Eidos are in their early stages, BBC reveals.

Although the phblishers did not wish to disclose the name of the company involved in the talks, the news was enough to send the company’s shares flying up 23%.