Consumer confidence drops on job fears
Consumer confidence tumbled in April in a survey completed before the Federal Reserve unexpectedly cut interest rates last week for the fourth time this year.
The New York-based Conference Board said Tuesday that its Consumer Confidence Index fell to 109.2 in April, down from a revised 116.9 in March.
The April drop returned consumer confidence to the level it was at in February. Analysts were expecting a decline, but only to 114.
JDS Uniphase posts loss, plans to cut jobs
JDS Uniphase Corp., a leading maker of optical network components for telecommunications, lost nearly $1.3 billion in its latest quarter and plans to eliminate 5,000 jobs, or 20 percent of its worldwide work force.
The job cuts, announced Tuesday, are much larger than the 3,000 reductions that JDS previously had indicated it planned to make by the end of June.
JDS, which has headquarters in San Jose, Calif., and in Ottawa, Canada, said the realignment would cost $375 million to $425 million, and would trim annual expenses by more than $250 million.
Lucent posts loss
Lucent Technologies Inc. lost $3.69 billion in the just-ended quarter as the communications equipment maker was hit hard by the financial meltdown of one of its customers, wireless network operator Winstar Communications Inc.
Lucent's net loss for the first three months of 2001, its second fiscal quarter, was equivalent to $1.08 per share. It included 15 cents per share from bad loans to Winstar, which filed for bankruptcy last week, and investment losses.
Lucent said Tuesday that the $2.7 billion figure was well beyond the range of $1.2 billion to $1.6 billion it had expected.
Morgan Stanley to cut 1,500 jobs
A month after reporting a steep decline in first quarter profits, Morgan Stanley Dean Witter & Co. said Tuesday it would eliminate 1,500 jobs.
The cuts in Morgan Stanley's securities and investment management units will come through a combination of early retirements and layoffs, the company said.
Most of the cuts will be U.S. jobs, though some positions in Europe and Asia also will be eliminated.
Cisco leader arrested
An executive at Cisco Systems Inc., the world's leading maker of Internet equipment, has been arrested and accused of embezzling more than $10 million.
Robert Gordon, a vice president of business development at Cisco, fraudulently acquired more than 30,000 shares of stock in Internet Security Services Group Inc., according to an FBI affidavit.
Gordon then sold the Internet Security Services shares after transferring them into a company he had started in the Bahamas, the affidavit alleges.
Gordon faces a $250,000 fine and five years in prison for fraud in interstate commerce.