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By Alorie Gilbert
Posted on ZDNet News: Apr 12, 2005 12:58:00 AM

Technology companies cut nearly 60,000 U.S. jobs in the first three months of the year, twice the number trimmed in the same period last year and the biggest loss of jobs in the sector since late 2003, according to a new report.

The telecommunications industry accounted for the bulk of the cuts, with more than 35,000 layoffs in the first quarter, said outplacement firm Challenger, Gray & Christmas, which issued the report Monday. The computer industry laid off about 16,100 workers.

The firm attributed the jump in job cuts to a surge in telecommunications mergers, such as the purchase of AT&T Wireless by Cingular Wireless.

The phone industry may continue to shed jobs. SBC Communications said recently that it would cut about 13,000 positions if its purchase of AT&T withstands government review. Meanwhile Qwest Communications' proposed buyout of MCI calls for the elimination of as many as 15,000 positions. Sprint's merger with Nextel is also pending.

The software industry is not immune either. Oracle cut about 5,000 jobs in the first quarter after gobbling up PeopleSoft.

The industry will come under increasing pressure this year as consumers and corporations take a tech-spending breather, the report predicted.

"Consumers and companies have been buying iPods, laptops, portable DVD players, cell phones, BlackBerries, etc.," said John Challenger, chief executive of Challenger, Gray & Christmas, in a statement. "Their technology cup is overflowing, which may lead to a cooling off period until a major technology breakthrough comes along."

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  • Most Recent of 37 Talkback(s)
Shafted again
the tech industry is so bogus, just like the rest of commercial industry. . . of course, govt work isn't much better. Oh well, time to open source bureaucracy.... (Read the rest)
Posted by: FilledOut Posted on: 04/13/05 You are currently: a Guest | | Terms of Use
Mergers my butt  Chad_z | 04/11/05
Duplication of services  osreinstall | 04/11/05
Agreed  PA-ITGuy | 04/12/05
Don't forget the severance packages.  Anton Philidor | 04/12/05
Interesting concept...  Stellardyne | 04/12/05
This is...  BitTwiddler | 04/12/05
Obviously..  nucrash | 04/12/05
Also as obvious  Stellardyne | 04/12/05
Things go in cycles  voska | 04/12/05
These articles pair up nicely with those 'IT workers upbeat again' articles  Jeff Spicoli | 04/12/05
They are upbeat about getting out of the industry  MyLord | 04/12/05
So, tell me again...  PA-ITGuy | 04/12/05
Actually...  Mack DaNife | 04/12/05
Not going to argue...  PA-ITGuy | 04/12/05
Agreed  Mack DaNife | 04/12/05
Give it 10 years  voska | 04/12/05
Retire?  Stellardyne | 04/12/05
Ahh..  PA-ITGuy | 04/12/05
This is just a natural result of several factors....  Laff | 04/12/05
That is why..  Patrick Jones | 04/12/05
Not Exactly  Roger Ramjet | 04/12/05
Sure it is  Spoon Jabber | 04/12/05
Electronics  voska | 04/12/05
That would be great!  Spoon Jabber | 04/12/05
Here in Canada we are taxed  voska | 04/12/05
GACK!  Roger Ramjet | 04/12/05
At the risk...  rapson | 04/12/05
I agree OSS is one of the other factors that include  Laff | 04/12/05
You just hit that magic red button Carl!  Jeff Spicoli | 04/12/05
I don't know...  Mack DaNife | 04/12/05
Seems inconsistent  rapson | 04/12/05
OSS hasn't commoditized the entire market.  Anton Philidor | 04/12/05
Isn't what MS is doing comoditizing thier own market  voska | 04/12/05
Corporate Greed  Nullifidian | 04/12/05
Corporate Greed eh?  Paco20 | 04/12/05
Slashin' jobs is slashin' wrists.  HypnoToad | 04/12/05
Shafted again  FilledOut | 04/13/05

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