Layoffs, Warnings, Market Slump Bruise Tech Sector

Layoffs, bankruptcies, closures, collapsing inventory prices, slumping morale and canceled IPOs: The one scourge that hasn't ravaged the tech sector, it seems, is a swarm of demon locusts. But economists, Wall Street consultants and others say that a figurative Eighth Plague of Exodus will not be far off, warning that dot-coms will doubtless hemorrhage extra staff and cash earlier than they hit backside. And although the crisis is most acute within the bleeding e-commerce niche, bruises are spreading to the broader expertise industry--and even the U.S. Ronald Masulis, a professor at the Owen Grad School of Management at Vanderbilt University in Nashville. Stock portfolios and worker morale suffered a major blow in April when a sell-off in tech stocks despatched the Nasdaq sliding 10 percent. Although many dismissed the plunge as a one-time hit, since then the tech-heavy index has sagged another 17 p.c, despite Monday's document surge of 10.5 p.c.

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