Computer Business: Signs of Softening
The computer industry, which until now has sailed above the recession, is showing signs of softness with scattered layoffs, dismissals, shorter workweeks and longer vacations among component manufacturers.</br></br>Most of the cutbacks iii the work force have been aimed at keeping inventory from building up rather than reflecting an absolute decline in demand, and industry officials expect business to pick up again soon as prices fall.</br></br>So far the recessionÛªs impact on the manufacturers of semiconductors and other computer components has been almost negligible compared with the battering manufacturing industries such as autos and steel have taken. But an increasing number of aggressively competitive Japanese firms are moving into the market, and American manufacturers fear the inroads the Japanese firms may make while the U.S. industry is in a weakened condition.</br></br>Texas Instruments announced two weeks ago that it was reducing its work force by about 2,800 jobs, or 3 percent. Reduced work schedules were already in effect for ap-</br></br>More than other semiconductor manufacturers, Texas Instruments supplied parts for the consumer market, which has been weakened by the recession. At the same time, it announced the cutback in the work force, the company also said it is phasing out its digital watch business.