Business Tech

With the overall economy slumping, the tech industry is taking its fair share of hits. We'll keep updating the chart below as news of company changes comes in. See our complete coverage of how the tech sector is faring here: Tracking the tech downturn.

Know of a layoff not listed here? Let us know on this form or e-mail us.

See also: The spreadsheet of sunshine: Who's hiring.

More than half a million of India's small businesses that have never owned PCs before will acquire their first computers this year, according to a new study released Monday.

According to Access Markets International Partners (AMI-Partners), nearly 22 percent of small businesses, or companies with up to 99 employees, in India have plans to invest in computers for the first time over the next 12 months.

While buying their first PCs, these small businesses will also boost spending in other IT sectors in India, such as software, services, and security, the research house said.

Dipendra Mitra, an analyst at AMI-Partners, said small businesses in India that already own PCs will extend the lives of their existing personal systems as they try to cut costs during the economic downturn.

As such, "non-PC-owning businesses hold the key to growth in India," Mitra said in a statement. "Even if a fraction of the 2.5 million non-PC-owning businesses buy a PC, it will provide a considerable boost to the Indian IT industry."

Although small and midsize businesses are a vital part of India's economy and a major contributor to its gross domestic product, only a little more than a third of all small businesses actually own a PC, AMI-Partners noted. A reason for this is their lack of awareness of the benefits PCs can provide, the research firm said.

A separate AMI-Partners survey found that more than 55 percent of small businesses see PCs as having no relevance to their business, and nearly a third have not even considered buying one.

However, Mitra said, this attitude is changing.

"About a quarter of non-PC (small businesses) say PCs will make their business look more professional," he said. "One-fifth of these non-PC SBs say PCs will increase the productivity of their employees, and the resultant business automation will boost efficiency."

Sol E. Solomon of ZDNet Asia reported from Singapore.

Correction at 8:00 a.m. PST: Logitech employs over 9,000 people.

Swiss peripherals manufacturer Logitech plans to cut approximately 15 percent of its salaried workforce. Logitech has more than 9,000 employees worldwide.

In a statement Monday, the company cited the deepening economic gloom as the reason for the cut.

"During the December quarter, the retail environment deteriorated significantly," Logitech Chief Executive Gerald Quindlen said. "We experienced varying degrees of weakness across all geographies and channels, as our customers reduced inventory levels in the face of weaker consumer demand. Moreover, we expect the economic environment to worsen in the coming months, and we are therefore taking significant actions to align our cost structure with what is likely to be an extended downturn."

Logitech, which has offices in Silicon Valley, Switzerland, and Asia, makes products such as keyboards, mice, Webcams, headphones, and remote controls. On Tuesday, it introduced several products at the Consumer Electronics Show in Las Vegas. Logitech has sales offices in major cities in North America, Asia, and Europe, including in the United Kingdom.

In its announcement about its restructuring, the company withdrew its growth targets for sales and operating income in its fiscal year 2009, and did not provide any new estimates.

Logitech will give details of the job cuts and restructuring with its fiscal third-quarter results, due on 20 January. It expects savings from the restructuring to begin to show in the first quarter of its fiscal year 2010.

Tom Espiner of ZDNet UK reported from London.

Updated at 11:05 p.m. PST with additional information throughout.

Another Netbook? No, not exactly. Hewlett-Packard's new Pavilion dv2 is an ultraportable, thank you. And the new Athlon Neo silicon inside from Advanced Micro Devices will try to prove that point.

AMD is introducing new chips at the Consumer Electronics Show in Las Vegas that target the no-man's land between Netbooks and notebooks. Typically, these designs are referred to as ultraportables--the most salient examples being Apple's MacBook Air, the Toshiba Portege, and the Sony Vaio TT series.

So what makes AMD's platform different? In one word, price. Ultraportables fall into the boutique category of laptops: very stylish, very slim, very light--and very expensive. Usually ranging between $1,500 and $3,000. HP's notebook with Athlon Neo silicon cuts the price in half. The Pavilion dv2 will start at $699 and top out at $899 for standard configurations.

HP 12-inch Pavilion dv2 ultraportable starts at $699, at least half the price of traditional ultraportable notebooks like the MacBook Air, Toshiba Portege, and Sony Vaio TT series.

(Credit: Hewlett-Packard)

The dv2, at 3.8 pounds, is slightly heavier than ultraportables that typically weigh between 2.5 and 3 pounds. It is 0.9-inches thick, slightly thicker than more expensive ultraportables like the MacBook Air.

But the Pavilion dv2 will pack features such as an AMD-ATI Mobility Radeon HD 3410 separate (discrete) graphics chip, a relatively large hard disk drive (HP lists drives up to 500GB), and a 12.1-inch LED screen. Features that differentiate it from Netbooks and put it squarely into ultraportable territory.

AMD Athlon Neo silicon details

(Credit: AMD)

The dv2 will also come with WWAN (Wireless Wide Area Network) options as well as standard Bluetooth and Wi-Fi.

Bahr Mahony, AMD's manager of mobile products, said in an interview that one of the few ultraportables available today with discrete graphics is the MacBook Air, but this starts at a whopping $1,800. (The Air uses Nvidia's GeForce 9400M graphics and Intel's Core 2 Duo low-voltage processors.)

The Athlon Neo platform can handle 1080p HD playback and a "casual" gaming experience with realistic 3D graphics, using the optional ATI Mobility Radeon HD 3410 graphics chip.

AMD's Athlon Neo processor--formerly code-named "Huron" under the platform codename "Yukon"--runs at 1.6GHz and has a power envelope of 15 watts, comparable to Intel ULV (Ultra Low Voltage) Core 2 Duo processors that power ultraportables today.

AMD's Neo does fall short in one respect, however. Currently it is only single-core, whereas Intel ULV processors are dual-core at a comparable power envelope, and, moreover, typically integrate 6MB level-2 cache memory to boost performance. AMD's Neo has only 512K of cache memory.

A dual-core chip, code-named "Conesus," will come in the second half of this year, according to AMD's Mahoney.

The first HP Pavilion dv2 ultrathin notebook is expected to be available from HP in the second quarter.

Amid current pessimism over the global economy, more reports of layoffs have surfaced online.

PC manufacturer Lenovo is reportedly laying off 200 staff in its Beijing-based headquarters, of which 10 or so are senior management, China Tech News reported Monday.

The report quoted an inside source as saying official cuts are still going through government channels for approval, but added Lenovo "may conduct large-scale adjustments in the Asia-Pacific region" as well.

A Lenovo representative dismissed the reports as rumors, telling ZDNet Asia the company could not provide additional information as it does not comment on speculation.

Software giant Microsoft has also been in the midst of layoff rumors. A CNBC report appeared Monday, saying the company would embark on a "significant" initiative "which might begin as early as this month to offset a global slowdown in sales."

Over the last week, similar reports have appeared, saying the company would undertake a massive global layoff that would take out 17 percent of its workforce. Adding to speculation was a statement released the prior week by Oppenheimer & Co. analyst Brad Reback, saying the company's profitability would be improved by a 10 percent reduction of its full-time global workforce.

Microsoft also declined to comment, noting in an e-mail reply to ZDNet Asia that it does not comment on "speculations or rumors".

An increasing number of multinational corporations in recent months have announced plans to reduce their headcount. Japanese electronics giant Sony announced in December it would lay off 8,000 full-time workers and another 8,000 part-time and contract-based workers globally. It employs a staff of 160,000 overall.

Dell, which had in 2007 set the goal of lowering headcount globally by 8,900, completed the exercise by its third quarter last year.

According to a December report, IBM plans to cut 2,600 jobs across its Asia-Pacific operations in a companywide "reorganization," with Japan hit hardest at 1,000 jobs set to be axed.

Eileen Yu reported for ZDNet Asia.

Intel and Adobe Systems on Monday announced that they're working to adapt Adobe's Flash media technology, widespread on PCs, to work in TV-focused devices.

The two companies will work on fine-tuning the Flash Player and Flash Lite for Intel's Media Processor CE 3100. The goal is for Intel to ship the first CE 3100 chip with Flash Lite support before the middle of this year.

A Flash-CE 3100 combo would give consumers a better viewing experience of Web-based and other videos via digital TVs, Blu-ray Disc players, cable set-top boxes, and audiovisual devices, the companies said.

"Our effort with Adobe is poised to accelerate a rich yet relevant Internet experience on the TV that will provide consumers with access to a growing number of Flash-based applications that will ultimately be enjoyed across a number of screens seamlessly, from the laptop to a MID and now the TV," William O. Leszinske Jr., general manager of Intel's Digital Home Group, said in a statement.

Intel says the Media Processor CE 3100 is the first to come in a lineup of system-on-chip offerings for consumer electronics. The CE 3100, earlier known by the code name Canmore, also factors into software work that Yahoo is doing for Internet-enabled TVs with its Yahoo Widget Engine.

Televisions aren't the only non-PC devices that Adobe has in its sights. In November, the company said it is in the midst of "evolving Flash Player 10 for mobile."

Freescale Semiconductor is expected to launch new silicon for Netbooks--devices that it believes will come in below $200--at the Consumer Electronics Show this week in Las Vegas.

The ARM chip architecture-based i.MX51 processor is designed to enable "low-power, gigahertz performance netbooks at sub-$200 price points," according to Freescale, formerly Motorola's chipmaking arm.

Freescale envisions sub-$200 Netbooks

(Credit: Freescale Semiconductor)

The definition of a Netbook seems to get redefined every month, as different companies push their distinct vision of the device. And Freescale is no different. While Freescale, like Intel, believes the Netbook is a companion device to the PC, it envisions devices that are more frugal with power consumption and run the Linux operating system. Intel-based Netbooks using the Atom processor typically offer better performance than ARM-based devices and run the Windows XP operating system.

"Because the primary function (of a Netbook) is accessing the Internet, Linux and Firefox are a good operating system and application for that purpose," Glen Burchers, director global marketing for Freescale's consumer products group, said in an interview.

He doesn't see ARM competing directly with Intel Atom processors, which target a higher-end Netbook segment. "ARM based processors can have a play, in addition to x86 (Intel)," Burchers said. 'We don't believe ARM processor will replace x86, but will augment them for a certain segment of the market." Ideally, the Freescale chip would be used in Netbooks that get about eight hours of battery life and sport an 8.9-inch screen.

And ABI Research, a market research firm, forecasts that there should be plenty of space for competing visions of the Netbook over the next several years. ABI expects consumers to purchase 60 million netbooks in 2013, compared with only 182,000 sold in 2007.

Freescale has been working with Pegatron, a wholly owned Asus subsidiary, to develop a reference design that features the 1GHz ARM Cortex A8-based i.MX51 processor, Canonical's Ubuntu operating system, Adobe's Flash Player software, a new power management chip, and the SGTL5000 ultra low-power audio codec.

Freescale's netbook reference design is available now. The company says it is currently sampling the i.MX51 processor and MC13982 power management device to tier-one Netbook customers. Volume production for the i.MX51 device is planned for Q2 2009 to power netbooks designed for the 2009 holiday shopping season, Freescale said.

(Note about Apple Netbook speculation: Freescale says that the "speculation is inaccurate" that its i.MX51 chip will be used in an Apple Netbook, as some reports have stated. "Freescale's netbook approach is unambiguously an ARM/Linux play, and any suggestion otherwise is inaccurate," a Freescale spokesman said Sunday night.)

TechFlash is reporting that EMC has purchased SourceLabs for an undisclosed fee. The unanswered question in TechFlash's report is why EMC would buy SourceLabs, a provider of support tools for Linux and other open-source software.

It's not that SourceLabs isn't a good company. I have followed SourceLabs since its inception, meeting with founder and CEO Byron Sebastian back at OSCON (in 2003) before the company was founded in 2004, and spent some time in the SourceLabs office in 2004 getting a demo of its technology. It was cool back in 2004, and has improved since then.

In addition, SourceLabs has managed to pull in some big-name customers like Fidelity and Merrill Lynch, demonstrating that it offers real value to real customers. Unlike some competitors like Spikesource, SourceLabs focused early on big enterprise needs and arguably did a better job of tailoring its products to meet those needs than its competitors, notwithstanding its share of financial struggles, which TechFlash details.

No, my question is what EMC, largely a provider of storage solutions, gets from a relatively broad-based open-source support technology company. TechFlash points to Swik.net, SourceLabs' open-source news and information repository as a source of value for the company, but I'm guessing that EMC didn't buy SourceLabs for Swik.net, given that the company had been contacting potential buyers just a few weeks ago to gauge interest in buying Swik.net, likely because EMC wasn't interested in that part of SourceLabs' business.

No, I don't think EMC is interested in an open-source community site, but it's clearly interested in the core SourceLabs technology. I'm struggling to understand the fit. Is EMC hoping to tap into expertise in various open-source technologies? If so, to what end?

I've asked SourceLabs' executive team for comment but, in the interim, anyone care to venture a guess as to what EMC is hoping to get from SourceLabs?

A couple of freelance writers for the blog VentureBeat say they have ported Google's Android operating system to an Asus Eee PC. But does this constitute a new trend in Netbooks?

Asus Eee PC: Android next?

(Credit: Asus)

Matthäus Krzykowski and Daniel Hartmann said in a post Thursday that they compiled, in four hours, the open-source Android operating system for an Asus Eee PC 1000H Netbook. The two run a start-up called Mobile-facts.

In somewhat breathless prose here's what the authors conclude about Android on Netbooks: "For (a) myriad of (Silicon Valley) software companies, it means a well-backed, open operating system that is open and ripe for exploitation for building upon. Now think of Chrome, Google's Web browser, and the richness it allows developers to build into the browser's relationship with the desktop--all of this could usher in a new wave of more sophisticated Web applications, cheaper and more dynamic to use."

If this was Verizon or Asus saying this, it would be product news. Otherwise, it remains an interesting experiment. The authors say Intel is one contributor working on the adoption of Android to a notebook, as a partner in Google's Open Handset Alliance.

Indeed, OHA does have a long list of illustrious members, many of them large companies (or entities) like China Mobile, Broadcom, LG, NTT DoCoMo, Nvidia, and Samsung.

Qualcomm is a member too. And, by the way, already has a prototype Netbook running Red Flag Linux on top of its Snapdragon processor. And it is worth noting that Qualcomm claims it has first-tier PC companies planning devices, including Acer, Asus, and Toshiba.

Would Qualcomm partners opt for the Android operating system instead? It is also worth noting that Qualcomm supplied the silicon guts for the T-Mobile G1, the first phone to run Google's Android operating system.

Global sales of chips sank 9.8 percent in November, underscoring the impact the worldwide economic crisis is having on chipmakers, the Semiconductor Industry Association said Friday.

The San Jose, Calif.-based trade group said worldwide sales of semiconductors fell in November to $20.8 billion, a decline of 9.8 percent from November 2007 when sales were $23.1 billion.

Sales were down 7.2 percent from the $22.4 billion in October, according to the SIA.

Memory chips are putting the biggest damper on growth. Excluding memory, there was a slower year-on-year decline of 4.8 percent to $17.3 billion from $18.2 billion, the SIA said. "The memory market, which has been under severe price pressure throughout the year, has seen sales decline significantly while many other product sectors have year-to-date sales above 2007 levels," SIA President George Scalise said in a statement.

Micron Technology, the largest U.S. maker of memory chips, posted a net loss of $706 million last month due to an oversupply of memory. And Taiwan's memory chip industry has been seeking rescue funds from the government because of deteriorating market conditions.

For the first 11 months of 2008, sales were $232.7 billion, a slight increase of 0.2 percent from the first 11 months of 2007 when sales were $232.2 billion. And excluding memory products, year-to-date sales jumped 5.6 percent.

"We expect the industry will remain the second largest exporter in the U.S. for 2008," Scalise added.