Tech Sector Layoffs Decline from 2012

Second Quarter Tech Layoffs

Tech sector layoffs spiked in the second quarter, with some 16,404 jobs being lost, nearly 5 times the level of the previous period. Still, it’s a dramatic improvement over the second quarter of 2012, when more than 32,000 jobs were eliminated, according to data from outplacement firm Challenger, Gray & Christmas.

The second quarter hit may come down to a simple case of timing. Consider: Computer sales generally get a boost during the third quarter with back-to-school sales, followed by holiday sales in the fourth quarter, then clearance sales in the first quarter. The second quarter provides a lull in the action and a time for companies to regroup and reorganize – leading to layoffs.

Unfortunately, the situation may not get better. “The second half of the year could see even more job cuts in the technology sector, as at least one forecaster cut its forecast for global IT spending this year in half due to slowing PC sales,” said company CEO John Challenger. “Research firm Gartner recently recalibrated its spending outlook from an originally reported 4 percent gain to a less optimistic 2 percent.”

Comments

  1. BY James says:

    Nothing surprising with these statistics.

    I do believe that SW engineering jobs will experience considerable cuts in the future once mobile computing starts to plateau in the marketplace.

    • BY Tall Guy says:

      Most of these layoffs were probably DB development and company application development. These numbers correlate to the H1-B visas. A company lays off a US Worker, brings in foreigner under H1-B visa and get big tax credits. The big industries swore to Congress there is a huge shortage of computer professionals and wants the number of visa’s increased.

      It begs the question, how can Congress believe industry searing there is a huge shortage when this many get laid off? It simply defies logic.
      Or the question: How can any of us believe the statistical numbers anymore. There is just too much that isn’t true anymore.

  2. BY Yves says:

    I think companies aught to realize they can not continue this up and down hiring and firing,.
    Development skills do not happen overnight and software applications and languages keep changing. The skill base must remain sharp. I wouldn’t be surprised if some companies don’t hire then want to hire later only to find that it is hard to find people suited for the company’s immediate software needs.
    It is not surprising that the country could lose its technical base.

  3. BY TruthSayer says:

    Only when politics will stay out of the economics we will see a stable job market.
    As long as we hire managers from one part of the world and encourage companies to move elsewhere things are going to look bad.
    Google this to see what I am talking about, and this is not an isolated incident, all major companies in southern California now employ a monolithic bloc of Indian IT people
    “Fired IT workers file lawsuit claiming H-1B workers replaced them”

  4. BY None says:

    I’m quite surprised. Especially with XP EOL on 4/8/14, there’s a IT storm brewing to either upgrade to new Windows on new higher resource desktops, push to Citrix/VM, or Cloud.

    Mobility is the future, but still stalled by security and standardized platforms for tech mgmt. This is both a technology as well as culture shift.

    The “perfect storm” – desktop OS support upgrades and data security, privacy, Virtualaization, Cloud and Mobility… Let’s not forget sales generation via Social and BI/Big Data analytics!

    As usual, we’ll have a consuderae IT skill ahift, but we will be in high demand.

  5. BY Andrew Welser says:

    Expect more off shore of American jobs to China. I know, I trained the Chinese engineers and technicians who took mine and my co-workers jobs.

    I also expect our Washington DC dimwits to do nothing to help Americans workers with tech tax brakes (now already the highest in the world).

  6. BY Unca Alby says:

    Hmmmm — didn’t we just see an article here about how IT hiring is on the INCREASE?

    What have we got now, a frigging revolving door?

    QUICK! HIRE HIRE HIRE! NO WAIT! LAYOFF LAYOFF! OMG! HIRE HIRE HIRE! SH&^#$@T! LAYOFF LAYOFF!

    Sheesh, selling real estate is starting to look better and better.

  7. BY CY says:

    It seems that there are no lay off at SF bay areas. Instead, most companies are bringing more oversea employees to fill IT positions here.

  8. BY Teresa Kapzynski says:

    They cite lagging PC sales as one of the reasons. I’ve been PC shopping the past couple of weeks, and sales folks complain that nobody wants Windows 8. PC companies are blaming their slumping sales on Windows 8, Microsoft is blaming PC companies for not coming out with touch screens quickly enough. I personally don’t want to touch the screen on my PC. Mobile is great, but I don’t want to be doing software development on my iPad.

    In any case, I got laid off the end of last year, my job of 12 years went to India, and I haven’t found anything yet. I do see the salaries for what I was doing are about 25K less than I was making.

  9. BY David Cunningham says:

    We’re not seeing a slow-down in Columbus, OH. I’m currently working full-time & just had a recruiter call me today about an opportunity with a major employer in the health industry (headquartered in Columbus) who is looking for IT professionals.

    Only seeing increases here.

  10. BY seeing things says:

    Ok – this is the deal – Company A makes a deal with one of the consulting companies, Company B. Company B will take over certain processing – but has to hire the existing staff. Company A gets the employee costs off their books (and keeps accrued vacation and sick leave pay) and Company B has the new contract with the staff to do the work. Company A does NOT report this to the Department of Labor as a lay-off. Company B touts the “NEW” jobs it has created. The only losers in this picture are the workers and Company A’s stockholders who now have money in a company that is basically a pass-through to Company B – in the short-term. In the longer term all the Non Disclosure Agreements in the world will NOT protect Company A from losing out on the ability to generate new business and processes or develop new profit lines. If you have stock in one of these Company A’s pull it out – it won’t end well!

  11. BY Shantal says:

    It sounds good at first, but if you consider that hiring has not been as active it makes sense that there might be fewer layoffs. When I look at most IT recruiting firms stock options on a daily basis, I seem to see an average loss of about a point. I would not make an automatic assumption that somewhat fewer layoffs indicates collective growth. If there were substantial gains then hiring might be expected, but its just not here yet. Most quality IT workers are not going to jump into a still volatile market at this time.

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