Econalypto: A Rightsizing Roundup
by John Paczkowski
Posted on January 27, 2009 at 5:24 AM PT
With IBM quietly contributing another 2,800 or so employees to the next Bureau of Labor Statistics Unemployment report, this seems like a fine time to pay respects to those who’ve gone before them. And there are many. In the past six months thousands of workers have been right-sized and offboarded. Rebalanced and rationalized. “Smartsized.”
Sacked.
A quick scan of the carnage.
- 8,000 whacked at Sprint (S)
- 6,000 let go at Royal Philips (PHG)
- 1,100 sacked at AMD (AMD)
- 4,000 adjusting to new economic realities at Motorola (MOT)
- 3,000 laid off at Seagate (STX)
- And a few hundred at Oracle (ORCL), as well
- 1,900 declared redundant at Dell (DELL)
- 5,000 losing their jobs at Microsoft (MSFT)
- 1,000 managers and 5,000 contractors pink-slipped at Alcatel-Lucent (ALU)
- 1,500 gone at Yahoo (YHOO)
- 12,000 released into the wild at AT&T (T)
- 600 cut loose at Adobe (ADBE)
- 6,000 aligned with the global economic climate at Sun (JAVA)
- And at Nortel (NT) 1,300 positions cut on top of the 1,200 previously announced
Grim isn’t it? Sad thing is, this is just a simple snapshot of what’s been happening in tech. According to the Department of Labor, employers in the states shed 524,000 workers in December, 2.6 million in all of 2008. That makes the last year the worst for layoffs since 1945, when 2.75 million jobs were lost. And that’s frightening, because according to some experts, we’ll get no respite in 2009. “We are very early in the cycle,” Peter Morici, a professor at the Robert H. Smith School of Business at the University of Maryland told BusinessWeek, adding that we’ve so far only seen a sliver of the job losses to come. “We are going to see the fury of the Old Testament for what we have done to the economy.”
