Motorola cuts 7,000 jobs

        Motorola Inc. will eliminate 7,000 jobs and have $3.5 billion in reorganization costs, ensuring a second straight annual net loss at the world's No. 2 maker of mobile telephones.

        The reductions will amount to 7 percent of the workforce and shrink Motorola to its size of the mid-1990s, “the era prior to the excesses of the telecom and dot-com booms,” Chief Executive Officer Christopher Galvin said.
       

GE stands by forecast

        General Electric Co. reaffirmed its profit forecast Thursday for the second quarter and the year, despite losses stemming from WorldCom and a reinsurance business.

        The Fairfield-based conglomerate expects earnings of $4.4 billion, or 44 cents per share, for the second quarter and is comfortable with expectations by analysts that it will earn about $16.5 billion, or $1.65 to $1.67 per share for the year, said Keith Sherin, GE's chief financial officer.
       

Clear Channel down

        Clear Channel Communications Inc. denied Thursday that it is being investigated by the Securities and Exchange Commission, but that didn't stop the broadcast giant's stock from being pounded in heavy trading.

        “There is not an SEC investigation of Clear Channel and there are no accounting issues or irregularities,” Clear Channel president Mark Mays said. “Clear Channel has a long history of very conservative business practices that are well documented in 30 years' worth of financial statements.”
       

Judge backs Blockbuster

        Blockbuster Inc., the world's biggest video-rental chain, persuaded a judge to dismiss independent retailers' claims that it sought to drive them out of business by negotiating exclusive discounts with movie studios.

        U.S. District Judge Edward Prado in San Antonio ruled for Blockbuster and the studios today, ending the trial after the independent storeowners finished presenting their evidence. The retailers failed to show evidence of a conspiracy between Blockbuster and the studios, Judge Prado said.
       

Omnicom shares drop

        Omnicom Group Inc. shares fell 9 percent after Moody's Investors Service said it may downgrade the third-largest advertising company's credit ratings.

        The shares dropped $4.51 to $44.30, after falling to as low as $36.50. They've fallen 50 percent this year.

        Omnicom, after spending $844.7 million on 39 acquisitions last year, may have undermined its ability to repay debt because of the purchases and stock buybacks, Moody's said.

No antitrust for Delta

        The Transportation Department approved a request from Delta Air Lines and Korean Air for antitrust immunity, allowing the carriers to coordinate schedules and fares.

        Delta already has such immunity with its European SkyTeam Alliance partners, Air France, Alitalia and CSA Czech Airlines.

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