Companies are taking dramatic steps to adjust to the economic slowdown:


Unprofitable or low-growth operations are the first to go. Conde Nast is closing Mademoiselle magazine, while General Motors (GM ) is stopping production of the Camaro and Firebird.


Everyone, from airlines and auto makers to PC makers and other tech companies, is slashing jobs to get costs down. The unemployment rate could peak as high as 7%.


Even before Sept. 11, Chapter 11 filings were running at a record pace. Companies that resorted to high-yield bonds in the late 1990s have been especially hard hit. Industries most at risk: telecom and retail.


Dealmaking has slowed drastically, but a wave of deals will hit in industries across-the-board as those with deep pockets snap up financially weak rivals.

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