IBM and Texas Instruments join layoff list

Thousands more tech workers face the axe

IBM and Texas Instruments (TI) have become the latest technology firms to announce mass job cuts.

The two companies are reportedly considering plans which will eliminate thousands of positions at each firm.

TI revealed in its latest earnings call that slowing demand linked to the economic crisis will force the company to cut roughly 12 per cent of its staff, 3,400 jobs in total. Around 1,600 employees will take voluntary retirement and departure deals, and 1,800 will be laid off.

The company estimates that the cuts will amount to $700m (£491m) in annual savings. TI expects to pay out roughly $300m (£210m) in severance and other charges relating to the cuts.

"We are realigning our expenses with a global economy that continues to weaken," TI chairman and chief executive Rich Templeton said in a statement. " By reducing expenses now, we keep TI financially strong and able to invest for future growth."

IBM, meanwhile, has yet to issue any official total, but the layoffs are believed to be in the thousands. The Wall Street Journal put the figure at 2,800, while Associated Press cited labour unions as estimating the total at more than 4,000.

The cuts are the latest in a nightmare stretch for virtually every arm of the technology industry.

The economic crisis has brought thousands of layoffs to names such as Microsoft, Yahoo and AT &T.

Other firms, such as Nortel, Qimonda and Circuit City, have been driven to bankruptcy.