Two old tech companies, both in trouble, have announced layoffs. Their actions might be attributed to a bad economy or to the fiscal cliff. But making that assumption would be a mistake.
Both Texas Instruments Inc. (NASDAQ: TXN) and Xerox Corp. (NYSE: XRX) are in declines that they cannot reverse. Texas Instruments has little share of the hot mobile chip market. And Xerox is in the ancient business of printers and in low-end tech consulting. Each one has been passed by more advanced companies. Xerox will cut 2,500 jobs and Texas Instruments will lay off 1,700.
Xerox’s chief executive, Ursula Burns, said, “We’ll be able to have a low-growth business shifting to a high-growth business as we get more of our revenue from services. On balance, we’re making progress, not fast enough. I’m not patient.” Neither are the people who lost their jobs.
Shares of both companies are thus far inactive in premarket trading but rose fractionally yesterday after hours. Texas Instruments was at $29.00, in a 52-week range of $26.06 to $34.24. Xerox ended at $6.32, in a a 52-week range of $6.26 to $8.84.
Douglas A. McIntyre
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
