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Tech Sector Short-Circuits
Once-insulated Silicon Valley fails to outpace slowdown
By Rob Quinn
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Posted Nov 15, 08 7:09 AM CST
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(Newser)
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A sudden slowdown has sent the tech industry into a slump so severe some are comparing it to the dot-com bust, the New York Times reports. The sector was confidently chugging along as recently as September but last month saw orders for both business and consumer tech rapidly plunge—"like flicking a switch," according to one analyst.
Thousands of tech workers are being laid off, including at Sun Microsystems where 6,000 job cuts were announced yesterday. Investors are scrambling to offload technology stocks and many expect the credit crisis will mean a long and deep downturn for the industry. But optimists note that tech has much more cash than most sectors and believe that the healthiest firms will swallow strugglers and emerge from the slowdown stronger.