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    Another 50,000 Tech Jobs Slated for Elimination

    in Channel News and Analysis


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    Since October, technology vendors have slashed more than 150,000 positions. Weak earnings and declining future prospects signal more job losses to come.

    A series of disappointing earnings releases last week drove the number of technology layoffs to new highs, as the Channel Insider Layoff tracker climbed to nearly 154,000 jobs lost or slated for elimination since October 2008.

    The rumors of Microsoft’s massive layoffs were put to rest when the company announced its first forced reduction in its 35-year history. Microsoft (NASDAQ: MSFT) plans to cut around 5,000 jobs over the next 18 months, beginning with 1,400 immediate layoffs. The world’s largest software company said the staff reduction would mostly target redundant positions throughout its 90,000-plus work force.

    "We may eliminate up to 5,000 jobs, but we'll also be adding several thousand employees, [so] I expect to be down a net of 2,000 to 3,000," said Microsoft CEO Steve Ballmer.

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    Under recessionary pressures, Intel (NASDAQ: INTC) announced the closing of two assembly and test facilities, one in Penang, Malaysia, and another in Cavite, Philippines. In addition, the world’s largest semiconductor company plans to stop production at two production plants located in Hillsboro, Ore., and Santa Clara, Calif.

    Intel’s changes will affect between 5,000 and 6,000 employees worldwide. Intel is working with the employees to place as many as possible at other locations.

    Intel will gradually close the facilities between now and the end of 2009, it said. A company spokesperson stated the closures are designed to "align its manufacturing capacity to current market conditions."

    AMD (NYSE: AMD), Intel’s leading competitor, announced “targeted restructuring actions” that, with normal attrition, result in the elimination of 900 jobs. The company had already announced a layoff in November that affected 500 employees. AMD recently won regulatory approval to split the company in two: one company for research, development and sales, and the second company for manufacturing.

    The biggest jump in January layoffs came when electronics retailer Circuit City announced it was unable to restructure its debt and will liquidate its remaining assets. The closure of the retail company will result in the loss of 35,000 jobs nationwide.

    The following is Channel Insider’s tally of layoffs since the recession officially began in October.

     

    MonthCompanyLayoffs
    JanuaryAMD1,100
    Month to DateAttachmate120
    73,010Autodesk750
     BlueArc21
     Bose1,000
     Circuit City34,000
     Coremetrics29
     Dell1,900
     Electoronic Arts600
     EMC2,400
     Ericsson5,000
     Google100
     Google (contractors)5,000
     Intel6,000
     Kronos260
     Lenovo2,500
     Lexmark375
     Logitech500
     Microsoft5,000
     Motorola4,000
     Nokia1,000
     Oracle500
     Seagate800
     WatchGuard55
    DecemberIntrinsyc95
    Month TotalAdobe Systems600
    13,095Sage North America150
     AT&T12,000
     Windstream170
     Lexmark International80
    NovemberKodak150
    Month TotalSpot Runner115
    21,433Nortel Networks1,300
     Motorola3,000
     Nokia600
     Tektronix150
     Cadence625
     AMD500
     SanDisk450
     BitTorrent18
     Insight240
     Circuit City3,400
     Imation200
     Applied Materials1,800
     National Semiconductor330
     Sun Microsystems6,000
     Epicor300
     KLA-Tencor900
     Pillar Data Systems150
     Lawson Software200
     Lam Research600
     Akamai110
     Palm105
     Quantum180
     Fring10
    OctoberMicron353
    Month Total:Qimonda3,000
    46,281Jive Software40
     Actel60
     Sony Ericsson2,000
     MPC Computers200
     Lenovo50
     Jaxtr13
     Texas Instruments300
     Softchoice65
     Manhattan Associates150
     HP24,600
     Dell8,900
     Xerox3,000
     ADC Telecoms325
     BroadSoft12
     Symantec788
     Freescale2,400
     Aliph25
    Total Since October153,819




    Discuss Another 50,000 Tech Jobs Slated for Elimination
     
    I don't understand Circuit City being included as a Technology Industry loss. If...
    Its just another way of restructuring and waiting for a bailout
    >>> Post your comment now!
     

     
     
    >>> More Channel News and Analysis Articles          >>> More By Kathleen A. Martin
     


     


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