Californian software company Siebel Systems has warned that its second quarter profit will fall short of forecasts and has said that sales of its software fell 35% due to the postponement of purchases by customers.

Following poor earnings figures and cost cutting measures, Ericsson (Nasdaq: ERICY) and Siebel Systems (Nasdaq: SEBL) have sparked speculation that they may cut jobs in their Irish operations.

More job cuts are expected soon in a services centre in Galway.

Nortel Networks reported its Q3 results, which showed a $3.5bn loss, or $1.08 a share, compared to a loss of $586bn, or 17 cents a share a year ago.