Microsoft leads the way, but has plenty of company on jobs cut front
Bob Brown and IDG News Service staff
The latest U.S. Bureau of Labor Statistics numbers are positive: nonfarm payroll employment rose by nearly 300,000 jobs in June, while the unemployment rate fell to 6.1%. Separately, IT careers market watcher Foote Partners reported in its most recent quarterly findings that average pay is up for IT pros with key certified and noncertified skills. Yet the masses still need to make room for some of the big tech companies to bring in workers with hotter skills and of course to overpay their higher-ups, so it’s not as if IT pros and those working for computing/networking companies haven’t lost jobs this year, too.
It was announced in June that the former Siemens Enterprise Communications would ax about half of its 7,700 employees, with a large chunk of them currently located in central Europe. The company said the reorganisation is needed because the unified communications market has undergone "dramatic shifts" away from hardware-based systems and toward software and cloud based products, leading to "pricing pressure."
The big layoff numbers at HP blend from one year into the next, but the company did say in May it would ditch another 11,000 to 16,000 jobs, after earlier saying it would cut 34,000. The company, which employs more than 300,000 people, is aiming to shed billions of dollars in spending in the face of flattening hardware revenue.
Exactly how bloody the software company’s layoffs announced in May were unknown publicly, but SAP said it was trimming its workforce to restructure its overall skill set. The news broke right before the company’s annual Sapphire Now conference.
Big Blue’s workforce cuts (or “rebalancings”) are always a mystery, numberswise, leaving it up to unions to toss out their estimates (4,000 to 6,000 was one estimate in February). Even though numbers would leave IBM with a lot of work to do to reach its $1 billion cost cutting goal.
The chipmaker didn’t beat around the bush heading into 2014, announcing that it expected its workforce to shrink by 5% this year amid expectations of flat sales. Intel said: "Intel will be aligning resources to meet the needs of the business this year. This will include targeted workforce reduction in addition to realignment of resources."