Meltdown hits tech companies in Calif. foothills

GRASS VALLEY, Calif.—High-tech companies clustered in the Sierra foothills east of Sacramento are being hit by the down economy, just like their counterparts in Silicon Valley to the west. The recession is forcing layoffs and cutbacks for firms in Grass Valley and Nevada City that produce things such as television broadcasting equipment, medical devices and circuit boards.

The Nevada County Economic Resource Council says more than 80 tech companies employ about 2,000 workers in the area. That's about 7 percent of the county's work force. The county's unemployment rate hit 8.4 percent in December, up from 5.5 percent a year earlier. Grass Valley Group, a 280-employee company that started the tech trend in 1959, just laid off 7 percent of its employees and is up for sale.
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