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Firms saving instead of hiring

San Jose Mercury News

Tuesday 12 April 2005, 9:52 am
Keywords: News Articles

LITTLE TRICKLE-DOWN EFFECT FROM GUN-SHY TECH COMPANIES

By Chris O'Brien, Mercury News

In 2004, Silicon Valley's 150 largest companies made more money than ever -- profits were up 169 percent from the year before.

So why didn't it feel like a boom year?

Because for the most part, companies aren't hiring locally. They're simply banking the cash.

During the dot-com bust, companies learned to sell more with fewer people. At the same time, demand for tech products has picked up, along with revenue. The result: The 10 Silicon Valley companies with the most cash on hand increased their stashes from a total of $21 billion in 1997 to $73 billion in 2005.

http://www.siliconvalley.com/mld/siliconvalley/11367760.htm