Tech sector layoffs by Claudia Sonea

Do you remember when I told you that the technology sector will always offer good news in a climate dominated by the financial and economical crisis? Well, I was wrong and the number of people that lost their jobs proved it. Apparently, even the necessary gadgets like the cell phone have become too much of a luxury for people to keep interest in them.
A global consulting firm dealing with job cuts called Challenger, Gray & Christmas, Inc. presented its report on Friday and the situation was quite grey. According to them the technology sector will get to alarming numbers of firings like 180,000 people. Only in October there were 140,422 job cuts, more than the record number of 2003. It is much more than the last year figures of 107,295, but a lot less than the 695,581 job cuts in 2001. Even Cisco (shares are down 24 percent) forecasts a rougher period for the tech sector, mostly due to businesses becoming more aware of the economical downturn and thus cutting back equipment purchases and upgrades.
However, it is odd than although giant PC companies record more-than-expected third quarter profits. Google, Microsoft, Yahoo and others are not just satisfied with their profits (especially Yahoo), but also launch new products on the market and develop all kind of attractive offers. Yet, we shouldn’t forget that the tech sector relays heavily on the consumer spending which is weakening daily. If indeed will get hit, the tech sector will shake the world as we now know. What will it be?



related story: http://news.yahoo.com/s/afp/20081114/tc_afp/usitelectronicstelecominternetcuts_081114201423;_ylt=AjySod9pSbsilAS_px9qoW.s0NUE

by Claudia Sonea for PocketNews (http://pocketnews.tv)

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