Data storage company EMC reported worse-than-expected revenue figures and said it would cut 1,350 jobs due to dismal spending on technology.
Following the news, EMC shares fell 18 per cent to $4.45 in after-hours trading.
EMC also said it no longer expected to return to profits for the second half of the year because companies worried about the economic outlook are holding off on technology projects that include EMC's data storage products.
EMC said that it would cut about 1,350 jobs, or about 7 per cent of its work force, bringing its staff to about 17,000 by early next year.