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Tech job cuts ahead?

By Bob Keefe | Thursday, October 11, 2007, 06:29 PM

Most techies had a little more job security this year than they did a year ago - but the outlook isn’t too rosy for all.

Computer, electronics and telecom companies announced plans to cut about 26,200 jobs in the third quarter of this year, down 19 percent from the comparable quarter last year, according to a survey released Thursday by outplacement firm Challenger, Gray & Christmas Inc.

Through the first nine months of this year, tech industry job cuts were down about 24 percent from a year ago.

Some areas were harder hit than others, and there are some signs of trouble ahead, though, according to the Chicago outplacement firm.

Semiconductor companies and other nuts-and-bolts electronics manufacturers announced 21,200 job cuts in the third quarter of this year - up 127 percent from a year earlier.

“The worry is that the job cuts in the electronics industry represent the canary in the coalmine warning us of bigger problems ahead,” John Challenger, CEO of the outplacement firm said in a news release. “After all, this (sector) provides many of the materials and components that go into computers, cell phones and other technology products.”

Furthermore, Challenger said, economic uncertainty and credit issues are causing some companies to postpone or consider postponing purchases of equipment such as computers. As a result, “conditions seem ripe” for more job cuts in the tech sector.

“The third-quarter decline in computer cuts may be the calm before the storm,” said Challenger.

Just in time, perhaps, for the holidays.

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By Red

October 12, 2007 12:12 AM | Link to this

Get ready, because Dell is about to kick start their layoffs to the tune of ~6K here in Austin alone!

By Mike

October 12, 2007 9:34 AM | Link to this

We should review why so many corporations are closing fabs in the U.S, and transferring the work to Asia. “In a survey of industry executives, Leachman and Leachman (2004) found that the top five reasons, rated very close together, for fab site selection were “Tax advantages,” “Supply of engineering and technical talent,” “Quality of water supply and reliability of utilities,” “Proximity to existing company facilities,” and “Environmental permitting process and/or other regulations.”

So if the USA eliminated environmental regulations, held the exchange rate of the Dollar to Yuan at something that was to our advantage, had a Communist government that could offer free factories to company’s, then perhaps we could compete and not lose jobs.