Old Tech Companies Struggle to Stay Afloat (TXN, XRX)
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
Filed under: 24/7 Wall St. Wire, Labor, Technology Companies Tagged: TXN, XRX