EMC, the US computer storage firm which employs some 1,600 people in Cork, will shed 10 per cent of its workforce and probably report a third quarter loss. The firm's statement to the markets, which estimates more than 2,000 job cuts, may also affect EMC's $20 million expansion plans in Cork announced last year.

Technology analysts warned EMC's announcement was likely to be the first of a series of profit warnings as technology companies react to last week's terrorist attacks in the US.

"This will likely be the first of many in the tech sector to warn," said Mr James Ragan, an analyst with Crowell Weedon. "Terrorist attacks have ground activity to a halt over the past week."

EMC blamed a widening recession and a slowdown in technology spend worldwide. It will cut its global workforce to about 21,000 by year-end from current levels of 23,400. "The business world is simply covered in a blanket of hesitation," said EMC president Mr Joe Tucci.