Employment: Source says IBM plans to cut up to 9,540 jobs

International Business Machines Corp., faced with stagnant sales due to a technology spending slowdown, is poised for its largest work force reduction in a decade, according to a person close to the situation.

The source said the job cuts are anticipated at between 2.5 percent and 3 percent of the world’s largest computer maker’s 318,000-member work force, or between 7,950 and 9,540 workers.

Most of the cuts are expected to take place in the second quarter.

Last month, IBM reported a sharper than expected 30 percent decline in first-quarter earnings, its biggest drop since 1993.

A spokesman for the Armonk, N.Y., company declined to comment.

Aviation: US Airways announces plans to apply for loans

US Airways warned on Friday that it might have to file for Chapter 11 bankruptcy if it cannot obtain federally backed loans that will probably require concessions from employees and suppliers.

The airline’s stock plunged more than 20 percent on the news.

US Airways, which lost $2 billion last year, is the second major airline to announce intentions to apply for loans that were approved by Congress as part of an industry bailout after Sept. 11.

Economy: Drop in food costs pushes wholesale prices down

Wholesale prices dipped by 0.2 percent in April, led by the biggest drop in food costs in nearly 28 years. Prices for clothing and light trucks, including SUVs, also fell sharply.

The decline in the Producer Price Index, which measures inflation pressures before they reach consumers, was the biggest in four months and a considerable moderation from the 1 percent jump in March, the Labor Department said.

Excluding volatile food and energy prices, the “core” rate of wholesale inflation nudged up by just 0.1 percent for the second straight month.

Wall street: Stocks fall on profit-taking

Uneasy investors opted for safety again Friday, taking profits for a second straight day and leaving the market indexes with only modest gains from Wednesday’s rally.

The two-day selloff wasn’t surprising given the triple-digit surge enjoyed by blue chips and technology stocks on Wednesday. But the drop was disappointing for investors who’d hoped the market would be able to keep more of its big advance, and that the rally signaled a longer-lived upturn.

The week ended up being another loser for the market, the third in a row.